When an American household purchases a bottle of Italian wine for $100,
a. U.S. consumption does not change, U.S. net exports decrease by $100, and U.S. GDP decreases by $100.
b. U.S. consumption does not change, U.S. net exports increase by $100, and U.S. GDP increases by $100.
c. U.S. consumption increases by $100, U.S. net exports decrease by $100, and U.S. GDP does not change.
d. U.S. consumption increases by $100, U.S. net exports do not change, and U.S. GDP increases by $100.
c
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Who ultimately benefits from price supports in agriculture?
A) consumers B) grocery store owners C) farmers D) exporters
Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C