When a tariff is imposed, the demand curve for the domestic good
A) shifts downward and to the right.
B) shifts upward and to the left.
C) shifts upward and to the right.
D) shifts downward and to the left.
C
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Suppose the Euros per U.S. dollar exchange rate is 2 . The aggregate price level in France is 100, and the aggregate price level in the United States is 125 . The real exchange rate between the two countries is _____
a. 2.5 b. 2 c. 1.6 d. 2.4
Within the framework of the AD/AS model, if a long-run equilibrium is present in the goods and services market,
a. decision makers will have accurately forecast the current price level when they arrived at resource price and loanable funds agreements. b. the profit rates of the firms will generally exceed the competitive level. c. the actual rate of unemployment will fall below the natural rate of unemployment. d. the current rate of output will be sustainable in the future. e. both a and d are correct.