Protectionist policies:
A) restrict the importation of foreign goods and services.
B) shift the supply curves for the protected goods and services to the right in the country imposing the restriction.
C) generally result in increased benefits in the long run in all countries.
D) are no longer advocated by powerful interests.
Ans: A) restrict the importation of foreign goods and services.
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Which of the following statements is true?
A) An increase in the nominal wage rate leads to a decrease in the real wage rate if the price level is stable. B) In an economy which has a positive inflation rate, the real wage rate is always greater than the nominal wage rate. C) An increase in the real interest rate always encourages higher savings. D) An increase in the real interest rate might discourage savings.
Between the 1921 recession and 1929, the U.S. economy was described as healthy. Which of the following changes in economic indicators is correctly stated and supports this claim?
(a) Real Gross Domestic Product (RGDP) increased per capita (b) There were increases in real income but they were more unequally distributed (c) Consumer spending on credit increased dramatically (d) There was a decline in total building construction