What kind of costs remain the same regardless of the level of production?

The income effect of a decrease in the price of macaroni and cheese (assume this is an inferior good) results in

A) an increase in the demand for macaroni and cheese. B) an increase in the quantity of macaroni and cheese demanded. C) a decrease in the quantity of macaroni and cheese demanded. D) a decrease in the demand for macaroni and cheese.

Generally, the higher the level of output in an economy is the ________ will be

A) lower the unemployment rate and inflation rate B) higher the unemployment rate and inflation rate C) higher the unemployment rate and the lower inflation rate D) lower the unemployment rate and the higher inflation rate