Federal spending and taxation both affect and are influenced by the overall level of economic activity.
70) Lower interest rates are generally charged on more risky investments and on securities that have longer maturities.
71) The aggregate demand curve shows the alternative combinations of the price level and real income that result in simultaneous equilibrium in both the goods and money markets.
72) Decreases in autonomous spending cause rightward shifts of the aggregate demand and supply curves.
73) Increases in autonomous spending cause leftward shifts of the aggregate demand and supply curves.
74) Expansionary fiscal policy will shift the AD curve leftward.
75) Contractionary monetary policy will shift the AD curve rightward.
76) Depreciation of the U.S. dollar will shift the AD curve leftward.
77) The aggregate production function shows the quantity and quality of resources used in production given the efficiency with which resources are utilized and the prevailing technology.
78) Aggregate supply changes much faster than aggregate demand.
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