Carlos can buy either sushi or eggrolls. If the prices of sushi and eggrolls triple and so does Carlos's money income, we can deduce that Carlos's budget constraint will
A. swivel in so that the slope of the budget constraint is tripled.
B. shift out but remain parallel to the old one.
C. shift in but remain parallel to the old one.
D. remain unchanged.
Answer: D
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The above figure shows the Lorenz curves for four different countries. Which country has the most unequal distribution of income?
A) country A B) country B C) country C D) country D
M1 money includes all but which one of the following?
a. Checkable deposits. b. Savings accounts. c. Paper money. d. Coins.
Beginning at the horizontal axis intercept, as a consumer moves upward along the budget line, he will find that
a. the marginal utility per dollar spent on the vertical axis good increases b. the marginal utility per dollar spent on the horizontal axis good increases c. the marginal utility per dollar spent on the horizontal axis good decreases d. the marginal utilities per dollar spent on both goods increase e. the marginal utilities per dollar spent on both goods remain constant along that particular budget line
Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. recessionary; lower; lower C. expansionary; higher; potential D. recessionary; higher; potential