# Suppose That You Buy A Lot Of Music And That The Prices

Suppose that you buy a lot of music and that the prices of CDs go up. The income effect means that you buy __________ CDs because ___________. fewer, your nominal income has been reducedfewer, your real income has been reducedfewer, you now enjoy music lessfewer, CDs are more expensive relative to other goodsmore, CDs are scarcer Suppose that you buy a lot of music and that the prices of CDs go up. The substitution effect means that you buy __________ CDs because ___________. fewer, your nominal income has been reducedfewer, your real income has been reducedfewer, you now enjoy music lessfewer, CDs are more expensive relative to other goodsmore, CDs are scarcer Flag this Question Which of the following cannot be inferred from the slope of the budget constraint?marginal rate of substitutionrelative price of one good (drawn on horizontal axis) in terms of other (drawn on vertical axis)relative price of one good (drawn on vertical axis) in terms of other (drawn on horizontal axis)opportunity costratio of the marginal utilitiesSuppose the government spends \$3 trillion and collects \$2 trillion in taxes this year. The ________ is equal to __________. debt, \$1 trilliondeficit, \$1 trilliondebt, \$2 trilliondeficit, \$2 trilliondiscretionary spending, \$5 trillionWhich empirical approach would be best suited to estimating the effect of the job-training program on earnings?time series analysiscross-sectional regression analysisstructural modelingquasi-experimentAll of the answers would be equally well-suited for this task.

# Suppose that you buy a lot of music and that the prices

Suppose that you buy a lot of music and that the prices of CDs go up. The income effect means that you buy __________ CDs because ___________. fewer; your nominal income has been reduced fewer; your real income has been reduced fewer; you now enjoy music less fewer; CDs are more expensive relative to other goods more; CDs are scarcer Suppose that you buy a lot of music and that the prices of CDs go up. The substitution effect means that you buy __________ CDs because ___________. fewer; your nominal income has been reduced fewer; your real income has been reduced fewer; you now enjoy music less fewer; CDs are more expensive relative to other goods more; CDs are scarcer Flag this Question Which of the following cannot be inferred from the slope of the budget constraint? marginal rate of substitution relative price of one good (drawn on horizontal axis) in terms of other (drawn on vertical axis) relative price of one good (drawn on vertical axis) in terms of other (drawn on horizontal axis) opportunity cost ratio of the marginal utilities Suppose the government spends \$3 trillion and collects \$2 trillion in taxes this year. The ________ is equal to __________. debt; \$1 trillion deficit; \$1 trillion debt; \$2 trillion deficit; \$2 trillion discretionary spending; \$5 trillion Which empirical approach would be best suited to estimating the effect of the job-training program on earnings? time series analysis cross-sectional regression analysis structural modeling quasi-experiment All of the answers would be equally well-suited for this task.