The diagram concerns supply adjustments to an increase in demand (D 1 to D 2 ) in the immediate market period, the short run, and the long run. In the long run, the increase in demand will:
A. have no effect on either equilibrium price or quantity.
B. increase equilibrium price but not equilibrium quantity.
C. increase equilibrium quantity but not equilibrium price.
D. increase both equilibrium price and quantity.
D. increase both equilibrium price and quantity.
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U.S. net exports include
A) sales of Hollywood movies to the rest of the world. B) the production of Ford Mustangs in China that are sold in China. C) Honda automobiles produced and sold in Japan. D) the sale of shares of Nike stock on the New York Stock Exchange. E) the sale of U.S. government securities to U.S. citizens.
If merchandise imports are greater than merchandise exports, the nation is experiencing a
a. negative balance on current account b. merchandise trade deficit c. capital account imbalance d. favorable balance of trade e. growth in foreign reserves