As the U.S. price level rises relative to price levels in other countries, U.S. _____
a. consumption and net exports will both decrease
b. consumption and net exports will both increase
c. consumption would increase and net exports will decrease
d. consumption would decrease and net exports will increase
e. consumption and net exports will remain constant
a
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Monetarists contend that an expansionary monetary policy will lead to a rise in the interest rate because __________ and the __________ effect will raise interest rates by more than the initial __________ effect lowers it
A) inflationary expectations; income; liquidity B) inflationary expectations; liquidity; income C) deflationary expectations; income; liquidity D) deflationary expectations; liquidity; income
The long-run industry supply curve in perfect competition is derived from the
A. short-run industry supply curve which shifts as new firms enter the industry. B. short-run industry supply curve which shifts as old firms exit the industry. C. freedom of firms from sunk costs so that new cost curves become long-run curves. D. All of the reasons listed.
The Trade Adjustment Assistance program is intended to help
A. businesses that seek to expand exports into protected foreign markets. B. local governments that are harmed when businesses fail as imports increase. C. protected industries obtain improved technology in order to increase productivity. D. workers and businesses that lose markets because of increases in imports.
An individual's labor supply curve might be backward bending.
a. true b. false