If the prices of both goods and income increase by the same percentage, what will happen to the budget line?
A) The budget line rotates inward from the intercept on the axis of the good that did not change in price.
B) The budget line rotates outward from the intercept on the axis of the good that did not change in price.
C) The budget line shifts outward without a change in slope.
D) Nothing.
D
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The money demand curve relates ________ to the ________.
A. the aggregate quantity of money demanded; price level B. the aggregate quantity of money demanded; nominal interest rate C. aggregate demand; nominal interest rate D. the aggregate quantity of money demanded; aggregate demand
The ________ system of currency exchange was set up in 1944
A) managed float B) flexible C) gold standard D) Bretton Woods
Figure 10-7
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Figure 10-8 displays the cost curves of a perfectly competitive firm. Profits at a price of $10 would be approximately
A. $1 per unit. B. $3 per unit. C. $5 per unit. D. $10 per unit.
If 10 years ago, the price of a movie ticket was $5 and the average hourly wage was $10, and today the price of a movie ticket is $8 and the average hourly wage is $20, then
A. movies are now relatively cheaper in terms of work hours. B. movies are now relatively more expensive in terms of work hours. C. the relative price of movies has remained constant. D. workers now need to work longer hours to earn one movie ticket.