Final answer:
The cost of bread and menu costs increased under Louis XVI's economic mismanagement before the French Revolution, leading to widespread famine and discontent.
Step-by-step explanation:
The question pertains to a historical event regarding the mismanagement of the economy under Louis's rule. Although the question does not specify which Louis or the time period, it is often associated with Louis XVI of France before the French Revolution. During his reign, due to economic mismanagement, the cost of bread skyrocketed, which was a staple in the French diet and integral to the survival of the common people.
This led to widespread famine and discontent, contributing to the social unrest that culminated in the French Revolution. Multiple factors, including costly wars and a rigid social structure, exacerbated the economic crisis. Inflation and the increased cost of living made basic necessities like bread unaffordable for many, illustrating how economic policies can directly affect the populace.
Bread prices were not the only thing that increased; menu costs—the costs firms face in changing prices—also likely rose as businesses had to frequently update their pricing in response to inflation. The economic instability was further illustrated by the Phillips curve, which demonstrates the tradeoff between unemployment and inflation, a principle that indicates the challenging balancing act governments face in managing economic policies.