Based on the graph showing an unanticipated expansionary policy, the short-run effects of an unanticipated expansionary policy are ______.

If asset prices fall and inflation expectations remain unchanged, what happens to inflation and unemployment? Defend your answer

Economists believe the most persuasive argument for protectionism is to protect infant industries. But the argument has a drawback. What is this drawback?

A) Governments always make the level of protection for infant industries too high. B) Governments are usually too impatient and do not allow protection to remain in place long enough to allow industries to be competitive in international markets. C) Governments usually use tariffs, rather than quotas, to protect infant industries in order to collect tariff revenue. (Quotas do not result in government revenue). D) Protection lessens the need for firms to become productive enough to compete with foreign firms; this often results in infant industries never "growing up."