In the Keynesian model in the long run, an increase in taxes causes the price level to ________ and the real interest rate to ________

Discouraged workers are ________ in the unemployment rate, and this tends to ________ the unemployment rate

A) counted; overstate B) counted; understate C) not counted; overstate D) not counted; understate

Based on the Saving-Investment Diagram, if the world real interest rate is indicated by C, then ________

A) the difference between values H and D measures the net capital outflow B) the difference between values H and D measures the trade deficit C) the domestic real interest rate is indicated by B D) the difference between values H and F measures the trade deficit E) none of the above