The budget line can shift or rotate
A) only when income changes.
B) only when prices change.
C) when either income or prices change.
D) None of the above, because changes in income and prices do not shift or rotate the budget line.
C
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The decision by the federal government to prohibit cigarette companies from advertising on television actually caused the companies' profits to increase, an outcome that is consistent with the prediction of the prisoner's dilemma game
Indicate whether the statement is true or false
Net worth increases in the same proportion as liabilities increase
a. True b. False Indicate whether the statement is true or false
Supply Curve
What will be an ideal response?
Refer to the accompanying figure.
Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at ________ creating ________ gap.
A. D; an expansionary B. B; no output C. D; a recessionary D. B; recessionary