The fall of actual GDP below the level of potential GDP is a signal that the economy is in a recession

A key issue in the presidential election of 2012 between President Obama and Mr. Romney concerned tax rates. President Obama favored increasing taxes, especially on the rich. As a result of a tax increase

A) the aggregate demand curve shifts leftward. B) the aggregate demand curve shifts rightward. C) the aggregate supply curve shifts leftward. D) the aggregate supply curve shifts rightward.

The series of induced changes in consumption spending that result from an initial change in autonomous expenditure is called the

A) induced effect. B) autonomous effect. C) multiplier effect. D) consumption effect