Deadweight costs of tariffs equal the sum of net changes in consumer and producer surplus brought about by the tariff
Indicate whether the statement is true or false
FALSE
Explanation: Changes in government revenue are also added to the calculation.
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Interest rates in the economy have risen. How will this affect aggregate demand and equilibrium in the short run?
A) Aggregate demand will rise, the equilibrium price level will fall, and the equilibrium level of GDP will rise. B) Aggregate demand will rise, the equilibrium price level will rise, and the equilibrium level of GDP will rise. C) Aggregate demand will fall, the equilibrium price level will fall, and the equilibrium level of GDP will fall. D) Aggregate demand will fall, the equilibrium price level will rise, and the equilibrium level of GDP will fall.
Workers displaced due to technological change usually find it difficult to get new jobs
a. True b. False Indicate whether the statement is true or false
Which of the following about business cycles is true?
a. A "depression" is a recession that is mild and relatively brief. b. The expansions and contractions of real world business cycles last varying lengths of time. c. The timing of business fluctuations is regular and, therefore, easily predictable. d. During the recessionary phase of the business cycle, the rate of unemployment is generally quite low.
A high-ranking corporate official of a well-known company is unexpectedly sentenced to prison for criminal activity in trading stocks. This should
a. raise the price and raise the present value of the corporation's stock. b. raise the price and lower the present value of the corporation's stock. c. lower the price and raise the present value of the corporation's stock. d. lower the price and lower the present value of the corporation's stock.