Author Question: Refer to Figure 10-8. If the price of biscotti is 1.50 and the price of a cappuccino is 3.00, what ... (Read 55 times)

humphriesbr@me.com · **on:** Jun 29, 2018

Refer to Figure 10-8. If the price of biscotti is 1.50 and the price of a cappuccino is 3.00, what is the slope of the budget constraint?

A) -(3.00 - 1.50 )/(3.00 + 1.50 ) = -1/3
B) -2
C) -1/2
D) The slope cannot be determined without the value of income.

Question 2

A decrease in ________ can put your job at risk if aggregate expenditures fall.

A) consumer confidence B) the length of a business cycle
C) the natural rate of unemployment D) the inflation rate