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Which of the following government policies would most likely result in an increase in economic growth?

Refer to Figure 12-4. Potential GDP equals $500 billion. The economy is currently producing GDP1 which is equal to $450 billion. If the MPC is 0.8, then how much must autonomous spending change for the economy to move to potential GDP?

According to the “wealth effect,” when the ________ falls, the ________ rises.

If firms are more optimistic that future profits will rise and remain strong for the next few years, then 

Figure 12-1 Refer to Figure 12-1. If the economy is at point L, what will happen?

High-income countries have ________ and ________ as compared to developing countries.

The aggregate demand curve illustrates the relationship between ________ and the ________, holding constant all other factors that affect aggregate expenditure.

If firms are more optimistic that future profits will rise and remain strong for the next few years, then 

Lack of investment in strong education and health care systems

Which of the following will cause a direct increase in consumption spending?