A dieter who prefers to eat small portions at his next meal, but chooses a large portion at mealtime when it arrives is:

The expansion path of product indifference curves shows the cost-minimizing combination of inputs

a. True b. False Indicate whether the statement is true or false

When actual output exceeds potential output there is ________ output gap and the rate of inflation will tend to ________.

A. no; remain the same B. an expansionary; decrease C. an expansionary; increase D. a recessionary; increase