Stagflation could be caused solely by a shift in the aggregate demand curve

Which of the following reasons explains why rich countries persistently restrict textile imports from poor countries?

A) The trade restrictions make textile consumers better off. B) The trade restrictions make workers in poor countries better off. C) The trade restrictions benefit an organized visible special interest in rich countries. D) Rich countries have a strong need for the revenue from these trade restrictions.

The economy is in equilibrium, TP = TE. Then, net exports fall. As a result, the __________ curve shifts __________, inventory levels unexpectedly __________, and business firms __________ the quantity of good and services they produce

A) TE; upward; rise; increase B) TP; rightward; rise; decrease C) TE; downward; rise; decrease D) TE; downward; rise; increase E) none of the above