Which of the following examines the costs and expected benefits of a choice?

Demand-pull inflation occurs

A) when the aggregate supply curve shifts to the right, while aggregate demand remains stable. B) when the aggregate demand curve shifts to the right, while aggregate supply remains stable. C) when the aggregate demand curve shifts to the left, while aggregate supply remains stable. D) when the aggregate supply curve shifts to the left, while aggregate demand remains stable.

Situation 32-1 In the early 1980s, the U.S. automobile industry managed to influence the government to negotiate a voluntary export restraint agreement with Japan that was in effect from 1981 until 1985. The predictable result was an average increase in the price of Japanese cars by about $1,000 and of U.S. cars by about $370. Also, as a result of the import quotas, 26,000 new jobs were "created"

in the U.S. automobile industry. Refer to Situation 32-1. Which of the following arguments is least likely to have been used by the U.S. auto industry to argue for import quotas? A) If the quantity of low-priced import cars is not restricted, foreigners will overtake the U.S. car market. B) A healthy auto industry is vital to our national security. C) If import quotas are in place, our profits will increase by about $300 per vehicle. D) Japan is protecting its market, and so should we; all we want is a level playing field.