Use the Following to Answer Questions

question 184

Multiple Choice

Use the following to answer questions :
Figure: Budget Lines for Tea and Scones
-(Figure: Budget Lines for Tea and Scones) Use Figure: Budget Lines for Tea and Scones.For months now,Agnes has had $20 per month to spend on tea and scones.The price of each cup of tea and each scone has been $1.Which chart shows what will happen to her budget line if the price of a cup of tea falls to $0.50?

• A) a
• B) b
• C) c
• D) d

---

Definitions:

Economic Boom

A period characterized by significant expansion in the economy, marked by increased production and consumption, lower unemployment rates, and robust economic growth.

Government Expenditures

Represents the total spending by the government on goods, services, and public works.

Money Supply

The entire pool of monetary assets at a specific point in an economy's timeline.

Aggregate Demand

The aggregate bid for all goods and services in an economy, pegged at a given price level throughout an agreed-upon time period.