An increase in investment demand for any given level of income and interest rates—due, for example, to more optimistic "animal spirits"—will, within the IS-LM framework, ______ output and ______ interest rates.

An efficient allocation of resources requires each product's price to equal its marginal cost

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

The equilibrium level of output associated with the intersection of the aggregate demand and aggregate supply curves

A. is always a full-employment level of output. B. may be less than the full-employment level of output but is never above the full-employment level of output. C. may be above the full-employment level of output but is never less than the full-employment level of output. D. may occur at output levels that can be either below, at, or above the full-employment level of output.