When the price of a good decreases, the budget constraint shifts out parallel to the original budget constraint.

Answer the following statement true (T) or false (F)

False

Economics

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Growth in employment occurs only because of increases in labor demand due to government hiring

a. True b. False

Economics

Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 

A. D; C B. B; C C. B; A D. D; B

Economics