True-False 14. A leftward shift of the aggregate demand curve causes both output and prices to fall. 15. Firms normally operate at less than 100 percent capacity utilization. 16. If.aggregate demand increases, firms will increase output before they increase prices, 17. Disposable income is equal to income minus saving. 18. Consumption will equal zero if disposable income equals zero. 19. Spending balance means that the government budget deficit is zero. 20. The income identity says that income is equal to consumption. 21. The multiplier is always greater than the marginal propensity to consume. 22. If the tax rate is zero, the multiplier would equal 1. 23. Net exports depend negatively on income. 24. The open-economy multiplier measures the impact of a change in government spending on exports. 25. The open-economy multiplier is smaller than the multiplier when net exports are exogenous. 26. Fiscal and trade deficits are unrelated