The government can close an inflationary gap by reducing government spending

Indicate whether the statement is true or false

T

Economics

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Suppose Morris earns $50 per week at his job and chooses to spend all of his income on either apples or biscuits. Suppose apples cost $5 per pound and a pack of biscuits costs $2 each. Which combination of fruits and biscuits will lie on Morris's budget constraint?

a. 6 pounds of apples and 12 packs of biscuits b. 6 pounds of apples and 12 packs of biscuits c. 5 pounds of apples and 8 packs of biscuits d. 8 pounds of apples and 5 packs of biscuits

Economics

In graphical form,the effect of imposing a tax on a good is shown as

A) a leftward shift of the market supply curve. B) a rightward shift of the market supply curve. C) a downward movement along the market supply curve. D) no change to the market supply curve.

Economics