The marginal propensity to consume is

At the time it occurs, external financing of the debt allows the economy to

If the economy has an inflationary GDP gap, one possible solution is to increase taxes.

In order to reduce the U.S. debt,

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

A positively sloped aggregate supply curve reflects

AD excess is the amount of additional aggregate demand needed to achieve full employment after allowing for price level changes.

The unique situation in which the behavior of buyers and sellers is compatible is referred to as

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