P4.3 Budget Constraints. Holding all else equal, indicate how each of the following changes would affect a budget constraint that limits consumption of goods (Y) and services (X).

Explain your answer.

A. Deflation that uniformly drops the price of all goods and services.

B. Inflation that consistently increases the price of all goods and services.

C. Technical change that reduces the price of goods, but leaves the price of services unchanged.