Why is it impossible to make everyone better off in the long run by imposing import restrictions?
What will be an ideal response?
In the long run, any import restriction in one nation ultimately reduces its exports because foreign residents will be less able to purchase goods shipped from that nation. Fewer exports from that nation lead to a decline in employment in its export industry.
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Draw a demand and supply curve for a competitive product, making sure to clearly label the axis. Give a brief explanation for why the resulting equilibrium is economically efficient
What will be an ideal response?
If the economy's full-employment output is $9 trillion, actual output is $9 trillion, and the budget deficit is $20 billion, the deficit in this case is known as a
A. fiscal deficit. B. structural deficit. C. natural employment deficit. D. cyclical deficit.