The political attractiveness of tariffs, quotas, and other trade restrictions is primarily the result of
A) the political clout of foreigners.
B) the special interest nature of trade restrictions.
C) the political clout of domestic consumers.
D) the attractiveness of sound economic policies to elected political officials.
B) the special interest nature of trade restrictions.
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Studies indicate that a lack of skill transferability in the U.S. has a particularly large effect on the earnings of:
A. Domestic workers with low levels of human capital B. First-generation immigrants C. Immigrants who lack English-language skills D. Highly-educated domestic workers
What are the substitution effects that affect aggregate demand?
What will be an ideal response?
When the economy is hit by a negative demand shock and the central bank does not respond by changing the autonomous component of monetary policy, then
A) inflation will be lower. B) output will be at its potential. C) output will be lower. D) inflation will not change. E) both A and B.
Refer to Figure 10.7. A movement from point C to point A could be caused by
A) a negative demand shock. B) a decrease in the term premium investors expect in the future. C) a decrease in the default-risk premium. D) a decrease in the expected rate of inflation.