Saving remaining constant, the average propensity to save declines with an increase in disposable income

The United States imposes a tariff on foreign limes. How does the tariff affect the U.S. price of a lime and the production of limes in the United States?

What will be an ideal response?

If the economy is in long run equilibrium and aggregate demand increases, then in the short run

A) nothing happens because the economy is in long run equilibrium. B) the price level rises and real GDP does not change. C) real GDP increases and the price level does not change. D) the price level rises and real GDP increases.