Employing a general-equilibrium approach, describe the effect of a new law that prohibits steel imports
What will be an ideal response?
The initial effect is that the supply curve for steel shifts leftward. This raises the price of steel. The largest users of steel are the automobile industry, the construction industry, and the appliance industry. The increased cost of inputs will raise the price of the goods produced by these industries. Given time, these industries will look to substitute plastic or aluminum in place of steel, raising the prices of these materials.
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The Other America, which challenged the notion that we had conquered poverty, was written by ___________.
Fill in the blank(s) with the appropriate word(s).
Easy monetary policy will ________ net exports as a result of a ________ currency.
A. increase; stronger B. decrease; stronger C. decrease; weaker D. increase; weaker
Suppose that elasticity has been reliably measured as 1.55 and the unit price decreases from $20 to $17.50. How much will quantity demanded increase?
What will be an ideal response?
An unexpected sharp reduction in inflation will most likely result in
a. the rapid growth of output and employment. b. a reduction in the actual rate of unemployment. c. a reduction in the natural rate of unemployment. d. a temporary increase in unemployment and a decline in real output.