Answer the next 6 questions based on the following information: Starting from the usual full-employment equilibrium, what would be the ultimate effect of a reduction in government purchases (G?) on each of the following economic variables? For each, you should write one of the following responses:  Up, Down, or Same

14. Potential GDP (Y_f)
15. National Saving (S)
16. The real interest rate (r)
17. Investment (I)
18. Consumption (C)
19. The price level (P)

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Heres the impact of a reduction in government purchases on each of the following economic variables ... View the full answer