Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.

The statement that a monopoly raises the price of its product is an example of positive economics

Indicate whether the statement is true or false

Refer to the diagram below. Cheri's budget line shifts inward from CD to AB. Which statement below is consistent with this shift?

A. Both prices double, while her income also doubles
B. Both prices increase by 20 percent, while her income increases by 15 percent
C. Both prices decrease by 10 percent, while her income falls by 15 percent
D. Both prices decrease by 10 percent, while her income falls by 6 percent