Restricting imports usually leads to

A) a country producing beyond its production possibilities frontier.
B) a country consuming even further beyond its production possibilities frontier.
C) a reduction in exports and employment.
D) a higher per capita level of real consumption.

C

Economics

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An increase in government spending will result in an increase in the price level and an increase in real GDP in the long run

Indicate whether the statement is true or false

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Under a fixed exchange rate system, an expansionary fiscal policy such as an increase in government expenditures will lead to a(n) ________ in real GDP and a ________ inflation rate

A) increase; higher B) increase; lower C) decrease; higher D) decrease; lower

Economics