If units of pizza are plotted on the horizontal axis, and units of hot dogs plotted on the vertical axis, and the price of a hot dog increases the
A) x-intercept and the slope of the budget line will increase.
B) y-intercept and the slope of the budget line will increase.
C) x-intercept and the slope of the budget line will decrease.
D) y-intercept and the slope of the budget line will decrease.
Question 2
In the short run, a decrease in government expenditure ________ real GDP and ________ the price level.
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
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