A curve that shows all the combinations of two inputs, such as labor and capital, that will produce the same level of output is called

Classical macroeconomic theorists argued that when households reduce consumption and deposit money into savings accounts, aggregate spending will:

A. increase because households will have more wealth. B. fall because banks typically make it difficult for businesses to borrow money. C. fall because consumers are saving instead of spending. D. not fall because banks will lend that money out to businesses.

Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 

A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward