LRE. After in increase in AD, the price level will initially be ____ and real GDP will initially be ____

As more people imported cars from abroad, service facilities became widely available. This increased the value of imported cars to those who owned one. This is an example of a(n) ________

A) pecuniary externality B) network externality C) moral hazard D) adverse selection

Reducing a tariff will ________ the domestic production of the good and ________ the total domestic consumption of the good

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