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A decline in total real output for two or more consecutive quarters is referred to as

The use of government taxes and spending to alter macroeconomic outcomes is known as

When the APC is greater than 1, the APS must be

The profit effect occurs because, in the short run, resource costs typically do not increase as rapidly as the price of goods and services.

The desired fiscal restraint is equal to

Given AD2 and AS1, the equilibrium price level in Figure 8.3 is

Stagflation is the result of

With respect to the aggregate demand curve, improved consumer confidence would

When the Federal Reserve System buys bonds in the open market, the national debt

Keynes believed that a market-driven economy was inherently unstable.