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...Macro final exam study guide true false questions solutions case fair oster chapter aggregate expenditure and equilibrium output firms react to unplanned inventory investment by reducing if actual is greater than planned inventories increase more interest rates are the major determinant of consumption spending in classical thought for example economics jean baptiste say marginal propensity consume change divided percentage income c mpc save will be a keynesian macroeconomic model private savings equal sum government budget deficit international current account also funds surplus when economy running down expand larger smaller multiplier means lump tax t an shifts from taxes result gdp automatic stabilizer which reduces increases decrease mps so everyone their predicts that total saving not this paradox thrift fiscal policy disposable minus plus transfer payments grow building up cut back on production contract g positive exceeds revenues line cross diagram becomes steeper it but does b...