A price support system that raises price above the normal equilibrium will cause a
A. shift left in demand.
B. decrease in the quantity supplied.
C. shift right in supply.
D. decrease in the quantity demanded.
Answer: D
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If one country's wage level is very high relative to the other's (the relative wage exceeding the relative productivity ratios) then it is probable that
A) free trade will not improve either both countries welfare. B) free trade will result in no trade taking place. C) free trade will result in each country exporting the good in which it enjoys comparative advantage. D) free trade will result in each country exporting the good in which it suffers the greatest comparative disadvantage. E) free trade will not affect the economic welfare of either country.
The actions that the Federal Reserve takes to manage the money supply and interest rates to pursue macroeconomic policy objectives refer to
A) fiscal policy. B) monetary policy. C) quantitative analysis. D) Federal Reserve transparency.