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

Using Figure 8.1, a decrease in the quantity of aggregate demand resulting from the interest rate effect would be depicted as a movement from point

The real balances effect says that an increase in the price level

Based on the classical view,

The size of the debt will begin to shrink if the federal government balances its budget.

A tax increase of $250 will exactly offset a $250 increase in government purchases, leaving aggregate demand unaffected.

Ceteris paribus, tariffs and nontariff barriers on imported factor inputs result in

The national debt is

If aggregate demand decreases and aggregate supply decreases, the level of real output will

According to Keynes, unemployment results from