1. Key concepts and terms Select the correct type of economist for each of the following views. View A continuing depression is impossible because markets eliminate persistent shortages or surpluses. Demand creates its own supply. The economy is self-regulating and will correct itself without government interference. Select the correct term for each of the following definitions. Definition The change in consumption resulting from a given change in real disposable income The curve that shows the amount businesses spend for investment goods at different possible rates of interest Economist Type ▼ Term Keynesian/Classical Keynesian/Classical ✓ Keynesian/Classical Autonomous consumption/Marginal propensity to consume/Consumption function ▼ Investment demand curve/Consumption function/Marginal propensity to consume

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