When referring to GDP, which is not a common alternative designation economists use?

Use the IS-LM model to answer this question. Suppose there is a simultaneous increase in government spending and reduction in the money supply. Explain what effect this particular policy mix will have on output and the interest rate. Based on your analysis, do we know with certainty what effect this policy mix will have on investment? Explain

What will be an ideal response?

Money lowers the transaction cost when: a. the economy is experiencing rapid inflation. b. its value is stable

c. the rate of inflation is uncertain. d. there is widespread deflation