Assume that the expectation of a recession next year causes business investments and household consumption to fall, as well as the financing to support it. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the GDP Price Index and the monetary base in the context of the Three-Sector-Model?
a. The GDP Price Index rises and monetary base
falls.
b. The GDP Price Index and monetary base fall.
c. The GDP Price Index falls and monetary base rises.
d. The GDP Price Index and monetary base remain the same.
e. There is not enough information to determine what happens to these two macroeconomic variables.
.C
Economics
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Refer to the given data. Alpha is a(n):
A. increasing-cost economy, whereas Omega is a constant-cost economy.
B. constant-cost economy, whereas Omega is an increasing-cost economy.
C. increasing-cost economy, as is Omega.
D. constant-cost economy, as is Omega.
Economics
Explain the impact for producers, consumers, and the government of a tariff imposed on imported lumber.
What will be an ideal response?
Economics