If total output increases from $1 trillion to $2 trillion as population increases from 100 million to 250 million, then output per person:

A flat IS curve implies that

A) an increase in money supply will change output by a relatively small amount. B) a decrease in taxes will change output by a relatively large amount. C) changes in money supply will have large multiplier effects on output. D) A and B.

Whenever productive resources are used to make capital goods

A) society is not producing efficiently. B) society is giving up current consumption. C) the production possibilities curve becomes flatter. D) absolute advantage occurs.