suppose the economy is in long-run equilibrium. if the government increases its expenditures, eventually the increase in aggregate demand causes price expectations to

During which of the following phases of the business cycle does the real gdp fall? a. trough b. expansion c. contraction d. peak

Under t, the point (0,2) gets mapped to (3,0). t-1 (x,y) →

Crowding out is a phenomenon focused upon most by the macroeconomists of whereby a government deficit interest rates, which in turn private investment spending. this group also believed that fiscal policy is the only thing that can lower natural unemployment. is just as effective in countering recessions as monetary policy. can be used most of the time, but monetary policy becomes a better option when velocity is fluctuating. should be used only if the central bank follows a monetary policy rule. faces problematic lags in propagating changes throughout the economy.