The argument that import restrictions save jobs and promote prosperity fails to recognize that

All else constant, a large decrease in the number of people who want to own sport utility vehicles (SUVs) because of their poor fuel efficiency could be expected to cause:

A) an increase in the supply of SUVs. B) a decrease in the equilibrium price of gasoline. C) an increase in the equilibrium price of SUVs. D) an increase in the supply of gasoline.

If policymakers expand aggregate demand, then in the long run

a. prices will be higher and unemployment will be lower. b. prices will be higher and unemployment will be unchanged. c. prices and unemployment will be unchanged. d. None of the above is correct.