According to the "misperception effect" explanation of short-run aggregate supply, firms increase output as the price level rises because they mistake the increase in overall prices for an increase in the relative price of their own output

Refer to the figure above. If A forms a customs union with C, the quantity of trade creation will be

A) 100 units. B) 70 units. C) 30 units. D) None of the above.

Which of the following is NOT a characteristic of populist regimes?

A) Nationalistic ideologies B) Focus on economic growth C) Focus on income redistribution D) Using economic tools to reach specific goals regarding labor, the orientation of business or the role of foreigners E) Focus on controlling inflation