According to the graph shown, if this economy were open to free trade, and decided to impose a tariff, the domestic quantity supplied would increase from:
This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
A. 815 to 1500.
B. 815 to 1150.
C. 250 to 500.
D. 250 to 815.
C. 250 to 500.
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
An unexpected rise in the growth rate of the CPI should send bond prices __________ and stock prices __________
A) up; up B) up; down C) down; up D) down; down
If the prices of imported resources decrease, then this event would most likely:
A. increase aggregate demand. B. decrease aggregate supply. C. decrease aggregate demand. D. increase aggregate supply.
A contractionary monetary policy causes
A. higher interest rates, which increases the foreign demand for U.S. financial instruments, which causes interest rates to decrease. There is no effect on net exports. B. lower interest rates, which decreases the foreign demand for U.S. financial instruments, raising the international price of the dollar and increasing net exports. C. higher interest rates, which increases the international price of the dollar and decreases net exports. D. higher interest rates, which decreases the foreign demand for U.S. financial instruments, raising the international price of the dollar and increasing net exports.