If a firm increases its capital stock per person while holding constant the number of workers employed, the firm is said to experience:

The long-run effect of a decrease in household consumption is to lower

a) the price level and leave real output unchanged. b) real output and leave the price level unchanged. c) both real output and the price level. d) real output and raise the price level.

In the long-run ISLM model and with everything else held constant, the long-run effect of a cut in government spending is to ________ real output and ________ the interest rate

A) increase; increase B) increase; not change C) not change; increase D) not change; decrease