The extent to which investment spending changes with changes to income is called the:

The economic model of consumer behavior predicts that

A) consumers divide their time between consumption and leisure activities in order to maximize social welfare. B) consumers will try to accumulate as many goods and services as they can before they die. C) consumers will choose to buy the combination of goods and services that make them as well off as possible from those combinations that their budgets allow them to buy. D) consumers will try to earn as much income as they can over their lifetimes.

Increases in the quality and quantity of an economy's resources have little effect on its potential output in the long run

a. True b. False Indicate whether the statement is true or false