If a consumer is maximizing utility, she will purchase quantities of output to the point where the total utility per dollar spent on consumption is equal across all goods

Explain the economic assumption that "people are rational."

What will be an ideal response?

Fiscal policy actions that are intended to have long-run effects on real GDP attempt to increase ________ through changing ________

A) aggregate demand; government spending B) aggregate supply; taxes C) aggregate demand; taxes D) aggregate supply; government spending