Refer to Figure 10-8. If the price of biscotti is 1.50 and the ...

[humphriesbr@me.com]

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

[chjcharjto14]

Answer to Question 1

B

Answer to Question 2

A

[humphriesbr@me.com]

Excellent

[tranoy]

Thanks for the timely response, appreciate it