Which of the following would unambiguously generate inflation?
A) a decrease in aggregate demand accompanied by an increase in aggregate supply
B) an increase in aggregate demand accompanied by a decrease in aggregate supply
C) an increase in aggregate demand accompanied by an increase in aggregate supply
D) a decrease in aggregate demand accompanied by a decrease in aggregate supply
B
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Suppose that Far North Canadian Lumber, Ltd., sells lumber in Canada at a price of $1,000 per 1,000 board feet and exports the same lumber to the United States at a price of $600 per 1,000 board feet. U.S. Lumber, Inc., produces and sells lumber for $700 per 1,000 board feet in the United States. How large an antidumping duty will the United States apply to lumber imports from Far North Canadian Lumber, Ltd.?
a. $100 b. $200 c. $300 d. $400
Refer to the graph shown.
If labor supply shifts from S1 to S2, the firm will:
A. raise employment from q1 to q0 to maximize profit where MRP = W. B. reduce employment from q0 to q1 to maximize profit where MRP = W. C. raise employment from q2 to q1 to maximize profit where MRP = W. D. reduce employment from q1 to q2 to maximize profit where MRP = W.
Why is it the case that a commodity tax on goods like food and shelter is sometimes seen as being regressive?
What will be an ideal response?
International participants
A. Participate only in American product markets. B. Participate only in American factor markets. C. Take no part in American markets. D. Participate in both American factor markets and American product markets.