Assume Kevin's income to spend on the two goods in the graph shown is $48, and books cost $12. If Kevin's budget constraint is one of the lines in the graph, which one must it be?
A. A
B. B
C. C
D. It could be either A or B.
Answer: D
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In the FOMC's "Statement on Long-Run Goals and Monetary Policy Strategy,"the FOMC agreed to a single numerical value of the inflation objective, 2% on the ________
A) PCE deflator B) GDP deflator C) CPI D) PPI
Which of the following would not be considered a boom period as measured by the percentage growth rate of U.S. output of goods and services?
A. the Roaring 20s B. the conversion from a wartime to a peacetime economy following World War II C. World War II D. the late 1990s
If aggregate demand shifts outward over a long period of time, with aggregate supply held constant, the economy should experience
A. unemployment. B. recession. C. budget surpluses. D. inflation.
According to Okun's Law, if the natural rate of unemployment is 5% and the actual unemployment rate is 4%, what is the level of full-employment output if output equals $10,125 billion?
A. $10,226 billion B. $10,025 billion C. $9926 billion D. $10,328 billion