Under new Keynesian theory, a correctly anticipated decrease in aggregate demand will lead to __________ in Real GDP and __________ in the price level

A) a decrease; a decrease
B) no change; an increase
C) no change; no change
D) an increase; an increase
E) an increase; no change


A

Economics

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Suppose the world price of automobiles is $20,000 and automobile manufacturers in Country A use $10,000 worth of imported inputs and no domestic inputs. What is the effective rate of protection for the automobile industry in Country A, if there is a tariff of 25 percent on imported automobiles and a tariff of 50 percent on imported inputs used in this industry?

What will be an ideal response?

Economics

Suppose the majority of the shares of Ford stock were sold to a Japanese firm. Assuming all else remains constant, this will

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Economics