Refer to the information provided in Figure 29.2 below to answer the question(s) that follow. Figure 29.2Refer to Figure 29.2. The price will fall if the economy is currently at Point ________ and policy makers implement a policy which decreases the aggregate demand curve to ________.

Suppose a country increases trade restrictions. This country would be pursing an

a. inward policy, which most economists believe has beneficial effects on the economy. b. inward policy, which most economists believe has adverse effects on the economy. c. outward policy, which most economists believe has beneficial effects on the economy. d. outward policy, which most economists believe has adverse effects on the economy.

Suppose that at first the price of a bag of coffee is ?$15 and the price of a box of tea is ?$9. ?Then, the price of a bag of coffee changes to ?$30 and the price of a box of tea changes to ?$21. What has happened the money prices and relative prices of these two? goods?

What will be an ideal response?