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Dissaving occurs whenever

Increases in deficit spending may be accompanied by

The fiscal year

If the MPC equals 0.80, a $200 billion tax decrease will increase consumption in the first round by

Aggregate demand is the total quantity of output

If, in the aggregate, consumers spend 75 cents of every extra dollar received, then the

Controversies between Keynesian, monetarist, and supply-side theories focus on the

Favorable expectations about future sales will cause higher investment, ceteris paribus.

The opportunity cost of the debt is the change in the mix of output that occurs when public sector spending crowds out private sector spending.

To eliminate an AD shortfall of $100 billion when the economy has an MPC of 0.50, the government should increase spending by