The movement of the budget line from BB to bb in the above figure suggests that income has:
A) increased and the price of X has decreased.
B) fallen and the price of Y has increased.
C) fallen and the price of X has decreased.
D) decreased but there have been no price changes.
Answer: B) fallen and the price of Y has increased.
Economics
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Economics
The idea that all aspects of economic behavior, such as labor supply, saving, and investment, respond to economic incentives, especially tax rates, is known as
A) New Keynesian economics. B) new classical economics. C) tax-structured classical economics. D) supply-side economics.
Economics