Refer to the figure above, which shows domestic supply and demand. If P1 is equal to P2 (the world price) plus a tariff, then the social loss from the tariff is equal to
A) a + c
B) b
C) P1 ( Q3 - Q2 )
D) P2 [(Q2 - Q1 ) + (Q4 - Q3 )]
E) a + b + c
A
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Cyclical unemployment
A) decreases during a recession. B) is higher during an expansion. C) is always a constant amount of unemployment. D) fluctuates over the business cycle. E) fluctuates but not in response to the business cycle. Consider the following people: ? Chris quits his job as an automobile mechanic to pursue his college education full-time. ? Darrelo was laid off from her technical support job because of a strike by production workers and is currently looking for a new job. ? Rita graduated from college and is currently looking for a job. ? Armondo quit his old job and will begin his new job in four days. ? Thorton was fired from his job as a steel worker because of massive imports of steel and he is looking for a new job. ? Jung was laid off from his job as an appraiser because the firm's business declined because of a general downturn in the economy and he is currently looking for a new job as an appraiser.
Explain what is meant by excess demand or s shortage
What will be an ideal response?
Assume that the central bank increases the reserve requirement. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to real GDP and reserve-related (central bank) transactions in the context of the Three-Sector-Model?
a. Real GDP falls, and reserve-related (central bank) transactions become more negative (or less positive). b. Real GDP falls, and reserve-related (central bank) transactions remain the same. c. Real GDP and reserve-related (central bank) transactions remain the same. d. Real GDP rises, and reserve-related (central bank) transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Bob's Barber Shop cut 3,000 heads of hair in 2016 and 3,100 in 2017. The price of a haircut was $7 in 2016 and $8 in 2017. If 2016 is the base year, what was Bob's contribution to real GDP in 2016?
A. $24,800 B. $21,700 C. $24,000 D. $21,000