Answer Happy

True/ False, explain every statement
The economy is in equilibrium when aggregate output equals
consumption spending.
For a closed economy with a government to be in equilibrium, the
following condition must
be satisfied: G + I = S + NT.
If autonomous spending increases, the aggregate demand function
becomes steeper.
If the government increases taxes by $4 billion and increases
spending by $4 billion,
equilibrium output increases by $4 billion.
A tax cut of $12 billion will have less effect on the economy
than an increase in government
purchases of $12 billion.
The amount the government owes to the public is the deficit.
If tax receipts are less than government expenditures the
government is running a deficit.
If the government runs a deficit, then the government debt
increases.
During recessions, automatic stabilizers work to reduce
government expenditures and
increase government revenues.
10. The structural deficit is the deficit at full
employment.