Suppose the economy is producing at the natural rate of output. A decrease in consumer and business confidence will cause ________ in real GDP in the long run and ________ in inflation in the long run, everything else held constant

What is the fundamental principle that economists use when evaluating the costs and benefits of production?

A) cost of goods principle B) production principle C) marginal principle D) supply and demand principle

Suppose that the United States imposes an antidumping duty on imported steel. Which of the following is likely to occur?

a. The U.S. terms of trade will improve, and U.S. steel imports will rise. b. The U.S. price of steel will rise, and U.S. steel consumption will fall. c. The foreign price of steel will rise, and foreign steel consumption will fall. d. U.S. steel companies will earn lower profits.