In the graph above, A is the initial budget line and B is the new budget line. Which of the following changes might have occurred?
A. P1 decreased, P2 was unchanged, income increased.
B. P1 increased, P2 decreased, income was unchanged.
C. P1 decreased, P2 increased, income was unchanged.
D. P1 was unchanged, P2 increased, income decreased.
Answer: C
You might also like to view...
If $1000 was deposited in a bank and the reserve requirement is 0.10, how much is available for loans?
A) $900 B) $910 C) $920 D) $930
Appendix: In regression analysis, the existence of a significant pattern in successive values of the error term constitutes:
a. heteroscedasticity b. autocorrelation c. multicollinearity d. nonlinearities e. a simultaneous equation relationship
According to Keynesian economists, when the price level is constant, an upward shift in the aggregate expenditure curve is associated with
a. a rightward shift (increase) in the aggregate demand curve b. a leftward shift (decrease) in the aggregate demand curve c. a rightward shift (increase) in the aggregate supply curve d. a leftward shift (decrease) in the aggregate supply curve e. no change in either the aggregate demand or aggregate supply curves
A(n) ________ is most easily shifted.
A. tax on pineapples B. property tax C. tax on gasoline D. income tax