An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.

The demand curve shows the relationship between quantity demanded and

A) income. B) price. C) supply. D) quantity supplied.

If the price of an inferior good increases, the substitution effect encourages the consumer to purchase less of it while the income effect encourages him to purchase more of it

a. True b. False