A person's consumption possibilities is defined by the budget line because
A) it marks the boundary between what is affordable and unaffordable.
B) it represents the individual's preference for different combinations of goods.
C) it marks the boundary between what can be produced and what is unattainable given the current state of technology and resources.
D) all consumers must consume on their budget line.
Question 2
Last year in the country of Union, the price level increased and real GDP increased. Such an outcome might have occurred because short-run aggregate supply ________ and aggregate demand ________.
A) decreased; decreased
B) increased; did not change
C) increased; decreased
D) did not change; increased
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