The value of transactions in the underground economy is estimated to be about what percentage of GDP in the United States?

When the labor market is in equilibrium, real GDP ________ potential GDP

A) is greater than B) is equal to C) is less than D) might be greater than, less than, or equal to E) is not comparable to

A contractionary fiscal policy negates some of the leftward shift of the aggregate demand curve because the resulting fall in interest rates

A) increases the quantity of investment, raises the exchange rate and boosts net exports. B) discourages savings, decreases the quantity of investment, raises the exchange rate, and reduces net exports. C) increases the quantity of investment, lowers the exchange rate, and boosts net exports. D) discourages savings, increases consumption, and reduces the quantity of investment and imports.