New classical economics suggests that in the long-run changes in aggregate demand will cause:

Suppose that Far North Canadian Lumber, Ltd., sells lumber in Canada at a price of $1,000 per 1,000 board feet and exports the same lumber to the United States at a price of $600 per 1,000 board feet. U.S. Lumber, Inc., produces and sells lumber for $700 per 1,000 board feet in the United States. How large an antidumping duty will the United States apply to lumber imports from Far North Canadian Lumber, Ltd.?

a. $100 b. $200 c. $300 d. $400

How do legal controls on prices lead to corruption?

a. Persons who benefit from the controls are willing to bribe officials to keep the controls in place. b. Persons who make the laws may favor certain groups at the expense of others. c. Selling in the black market is very profitable, and persons therefore willingly break the law. d. Discrimination may occur as a means to limit buying or selling select groups. e. All of the above are correct.