Final answer:
Marie plans her budget for magazines and pies using addition and subtraction. 'Menu costs' refer to the expenses for changing prices. An expenditure-output diagram has expenditures on the Y-axis and output on the X-axis.
Step-by-step explanation:
Budget Planning and Economic Terms
To begin, since the exact items in the weekly budget and their costs are not provided in the question, let's hypothetically say magazines cost $4 each and pies cost $5 each. Marie's planning involves simple mathematics—the addition of costs and the subtraction from her budget. If she buys 3 magazines and 2 pies every week, the total cost would be (3 magazines * $4 per magazine) + (2 pies * $5 per pie) = $12 + $10 = $22, which is within her $24 budget.
Moving onto the term 'menu costs', economists refer to the costs associated with changing prices in response to market conditions. For instance, if a caterer has to reprint menus due to changes in supply prices, this incurs additional costs, which are menu costs.
For the expenditure-output diagram, generally, on the axes, the vertical (Y) axis represents total expenditures and the horizontal (X) axis represents the total output or income. This type of diagram is used to analyze the overall spending and production levels within an economy.