If protective import-restricting tariffs are imposed by a country, in the majority of cases that nation's consumers end up
A. paying a higher price and consuming less of the good than they otherwise would.
B. paying a lower price and consuming less of the good than they otherwise would.
C. paying a lower price and consuming more of the good than they otherwise would.
D. paying a higher price and consuming more of the good than they otherwise would.
Answer: A
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Evidence on the existence of relative PPP shows that:
A) the evidence for relative PPP is scanty and theory is large discredited B) the evidence for relative PPP is hit or miss, and so one should exercise cations in using relative PP to predict changes in exchange rates C) relative PPP is an approximate guide to predicting the relationship between changes in inflation and exchange rates over long periods such as decades d) relative ppp holds nearly perfectly in the short and long run, are used with great accuracy to make predictions
The inside lag is the time between:
A) observing a shock and countering it. B) taking an action and observing its effect. C) short-term and long-term goals. D) taking an action and determining future long-term goals
Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
If demand and supply both decrease
A) the equilibrium quantity definitely will decrease, and the market clearing price definitely will decrease. B) the equilibrium quantity definitely will decrease, and the market clearing price definitely will increase. C) the market clearing price definitely will decrease, but the change in the equilibrium quantity cannot be determined without more information. D) the equilibrium quantity definitely will decrease, but the change in market clearing price cannot be determined without more information.