If a country bans the importation of a particular good, the market equilibrium is shown by the intersection of the foreign demand curve and the domestic supply curve
Indicate whether the statement is true or false
FALSE
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The Fed usually prefers the inflation rate to hover around ________
A) 6% B) 10% C) 2% D) 5%
How does the imposition of a tariff reduce the price of imports?
a. At the lower quantity supplied, the price to the importer is lower than if there were free trade. b. At the lower quantity demanded, the price to the importer is lower than if there were free trade. c. Supply of the product is increased from domestic production, reducing the price of the imports. d. Demand for the product is decreased, so that price must fall.
If a market is in long-run equilibrium, which of the following conditions will be present in a competitive price-taker market but absent from a competitive price-searcher market?
a. P = ATC b. MR = MC c. P = MC d. MR < P
Other things the same, an increase in the expected price level shifts
a. short-run aggregate supply right. b. short-run aggregate supply left. c. aggregate-demand right. d. aggregated-demand left.