Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter22: Inflation
Section: Chapter Questions
Problem 18RQ: What is deflation?
Question
The change in the budget line from B3 to B1 was caused by:
|
(a) increase in the consumer's budget |
||
|
(b) same percent fall in the prices of both goods |
||
|
(c) decrease in the price of Y |
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(d) decrease in the price of X |
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(e) increase in the price of Y |
Transcribed Image Text:400
350
300
Y
250 B4
200
B1
150
B3
100
50
0
B2
0 1 2 3 4 5 6 7 8
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