Author Question: When the price of a pizza decreases from 14 to 12 A) the income effect means people buy less ... (Read 37 times)

Ebrown · **on:** Jun 29, 2018

When the price of a pizza decreases from 14 to 12

A) the income effect means people buy less pizza.
B) the income effect points out that the total purchasing power of people who buy pizza increases.
C) the income effect means that the demand for pizza will not change.
D) None of the above answers is correct.

Question 2

An increase in the money wage rate

A) increases the long-run aggregate supply.
B) decreases the long-run aggregate supply.
C) increases the short-run aggregate supply.
D) decreases the short-run aggregate supply.