Short-run macroeconomic equilibrium occurs when the quantity of real GDP demanded ________
A) equals potential GDP
B) equals full-employment GDP
C) does not equal full-employment GDP
D) equals the quantity of real GDP supplied
D
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The WTO opposes quotas. Why did the WTO not stop the U.S. Japanese quota during the 1980s?
a. There was a loophole in the GATT (at the time) that did not restrict nations from "voluntarily" curtailing their own exports. b. Quotas are permitted under the GATT and WTO—as long as they are implemented for an approved reason. c. The political situation at the time was tense; the GATT did not want to take on the powerhouses of the United States and Japan over such a small issue. d. The WTO operates by consensus; all parties wanted the quotas.
Assume that the economy is at a long run equilibrium and oil prices rise. As a result, the ________ shifts ________
A) AD; rightward B) AD; leftward C) SAS; rightward D) SAS; leftward