Author Question: Given the budget line in the above figure, what is the relative price of pizza? A) 10 gallons of ... (Read 120 times)

evelyn o bentley · **on:** Jun 29, 2018

Given the budget line in the above figure, what is the relative price of pizza?

A) 10 gallons of milk per pizza
B) 6 gallons of milk per pizza
C) 4 gallons of milk per pizza
D) 2 gallons of milk per pizza

Question 2

In November, 2012, U.S. lawmakers were faced with a fiscal cliff: if they did not agree on how to reduce the federal deficit, automatic tax increases and drastic cuts in government spending would take effect.

What would happen if the fiscal cliff occurred? A) The aggregate demand curve shifts leftward, the price level falls and real GDP decreases.
B) The aggregate demand curve shifts rightward, the price level rises and real GDP increases.
C) The short run aggregate supply curve shift leftward, the price level rises and real GDP decreases.
D) The short run aggregate supply curve shifts rightward, the price level falls and real GDP increases.