If the price of housing increases dramatically, then the CPI......

When a consumer chooses the combination of goods and services to buy, what is she or he trying to achieve?

What will be an ideal response?

A flat LM curve implies that

A) an increase in government spending will change output by a relatively small amount. B) a decrease in taxes will change output by a relatively small amount. C) changes in government spending and taxes will have a large multiple effect on output. D) A and B.