An increase in the price level ________ the aggregate quantity supplied and ________ the aggregate quantity demanded
A) increases; decreases
B) does not change; decreases
C) decreases; increases
D) decreases; decreases
E) increases; increases
A
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In the above figure, suppose the government subsidizes the production of milk so that milk production increases to 8 million gallons per day
What is the size of the deadweight loss? (Hint: It is equal to the triangular area of negative consumer and producer surplus that results when output exceeds the efficient level.) A) $12.5 million B) $6.25 million C) $4.50 million D) $2.25 million
In leading the opposition to the adoption of NAFTA, H. Ross Perot argued that NAFTA would lead to
A) a loss of U.S. competitiveness with Canada. B) a loss of U.S. manufacturing jobs to Mexico. C) a loss of U.S. willingness to negotiate the Uruguay Round. D) All of the above.