According to the graph shown, if the economy were open to free trade, the domestic quantity supplied would:
This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
A. drop from 815 to 500.
B. drop from 815 to 250.
C. increase from 250 to 500.
D. increase from 815 to 1500.
B. drop from 815 to 250.
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Suppose a tax cut that had been anticipated by households and businesses doesn't happen. Describe a new Keynesian analysis of the consequences of this "event."
What will be an ideal response?
In the diagram of the decision tree, what lies at the bottom, the roots?
a. The basic decision b. The alternatives c. Resources d. Values
When the economy is on the flatter part of the short run aggregate supply curve, efforts to change inflation with monetary policy will be ____ successful and efforts to stimulate the economy will be ____ successful
a. More; more b. More; less c. Less; more d. Less; less
A decrease in the discount rate ________ bank reserves and ________ the money supply if banks respond appropriately to the change in the rate
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases