Following an unexpected decline in aggregate demand, once production cutbacks start offsetting rising inventory levels:
a. the aggregate demand curve will shift to the right.
b. the aggregate supply curve will shift to the left.
c. the economy will return to its natural rate of unemployment.
d. the short-run Phillips curve will shift to the right.
e. the economy will face both higher inflation and a higher unemployment rate.
c
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The General Agreement on Tariffs and Trade (GATT) was initiated in response to
a. in increase in exports of low-priced goods from developing countries to developed countries. b. the replacement of manufacturing jobs with service jobs in developed countries. c. economic dislocations caused by the North American Free Trade Agreement (NAFTA) in the 1990s. d. high tariffs imposed during the Great Depression of the 1930s.
Refer to the accompanying figure. Total producer surplus in this market is:
A. $10 B. $125 C. $500 D. $250