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Author Question: Refer to the above figure. Line EBD is called A) the saving function. B) the consumption ... (Read 110 times)

Diane

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on: Jun 30, 2018
Refer to the above figure. Line EBD is called
 
  A) the saving function. B) the consumption function.
  C) the 45-degree line. D) aggregate demand.

Question 2

Contractionary fiscal policy will most likely
 
  A) involve increasing government spending. B) reduce the price level.
  C) involve cutting taxes. D) raise real GDP.


Anna

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Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

B


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