Assume that a tariff is imposed on an imported product. The difference between the domestic price and the world price is captured by
A. domestic producers.
B. the government.
C. foreign exporters.
D. domestic consumers.
Answer: B
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If taxes are increased, the AD curve
A) is not affected because a change in taxes is a nominal change not real change. B) shifts rightward and aggregate demand decreases. C) shifts leftward and aggregate demand decreases. D) does not shift but there is a movement down along the curve.
By 1937, when a new recession began in the midst of the Great Depression,
A) GDP had almost recovered to its 1929 level, but unemployment was still above the 1929 level. B) unemployment had almost fallen back to its 1929 level, but GDP had yet to recover to its 1929 level. C) neither GDP nor unemployment had returned to near their 1929 levels. D) both GDP and unemployment had returned to near their 1929 levels.
A soil bank program usually accompanies a price ceiling program in agriculture
Indicate whether the statement is true or false
The best public policy solutions to address the disruptions of foreign trade typically do not involve ____________.
a. politics b. public opinion c. economics d. protectionism