Aggregate-demand curve shifts to the left if the money supply decreases.

If a good is inferior and its price decreases,

a. the income effect will be positive and the substitution effect will be positive. b. the income effect will be negative and the substitution effect will be negative. c. the income effect will be positive and the substitution effect will be negative. d. the income effect will be negative and the substitution effect will be positive.

If the economy is on the flat part of the aggregate supply curve, expansionary fiscal policy works well to increase output with little increase in the price level.

Answer the following statement true (T) or false (F)