According to Keynes, a pessimistic outlook causes consumers and businesspersons to ____, and a recession could occur
a. increase planned investment
b. decrease planned spending
c. increase exports
d. decrease imports
e. decrease saving
b
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
A rise in the price level brings a ________ in the real wage rate that ________ profits which leads to ________ production
A) rise; reduces; increasing B) rise; reduces; decreasing C) fall; increases; increasing D) rise; increases; decreasing E) fall; decreases; decreasing
If there is no Ricardo-Barro effect, an increase in the government budget surplus will
A) lower the real interest rate. B) decrease the demand for loanable funds. C) raise the real interest rate. D) decrease the supply of loanable funds. E) not change the demand for loanable funds, the supply of loanable funds, or the real interest rate.
Savings is considered the portion of income:
A. in any interest-bearing account. B. that is placed in an individual's savings account. C. that is not immediately spent on consumption of goods and services. D. that is spent on productive inputs, such as factories, machinery, and inventories.