If an economy's actual GDP exceeds its potential GDP, _____
a. wages and prices must fall
b. self-correcting forces will shift the SRAS curve to the left
c. self-correcting forces will shift the AD curve to the left
d. inflation will occur when AD shifts to the left
e. unemployment is likely to be unusually high
b
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In the 1980s, the U.S. government forced Japanese automakers to limit their exports to the United States. The union representing the autoworkers (UAW), argued that otherwise the U.S. auto industry would have contracted
The UAW's argument is the ________ argument for protection. A) save domestic jobs B) national security C) anti-dumping D) infant-industry E) bringing diversity and stability
If the residents of a country receive income from their foreign investments, it is counted as a
A) credit in the current account. B) debit in the current account. C) credit in the capital account. D) debit in the capital account. E) debit in either the capital or current account, depending on the type of investment income.