When producers produce more consumer goods than consumers are prepared to buy, the remaining consumer goods allow intended investment to increase, increasing national income

A straight-line production possibilities boundary differs from a concave boundary in which of the following ways?

A) The straight-line boundary shows opportunity cost, whereas the concave boundary does not. B) The straight-line boundary illustrates constant opportunity costs, whereas the concave boundary illustrates increasing opportunity costs. C) A straight-line boundary is associated with a command economy, whereas a concave boundary is associated with a free-market economy. D) The concave boundary illustrates constant opportunity costs, whereas the straight-line boundary illustrates decreasing opportunity costs. E) The straight-line boundary does not show scarcity, whereas the concave boundary does.

A reduction in government spending causes the equilibrium level of aggregate output to ________ at any given interest rate and shifts the ________ curve to the ________, everything else held constant

A) rise; LM; right B) fall; IS; left C) fall; LM; left D) rise; IS; right