In 1990 the United States imposed trade embargoes on Iraq's ...

[tichca]

In 1990 the United States imposed trade embargoes on Iraq's international trade. The negative effect on Iraq's consumer surplus would be greater the
 
  A) less elastic Iraq's demand schedule.
  B) more elastic Iraq's demand schedule.
  C) greater Iraq's dependence on foreign products.
  D) more inelastic Iraq's supply schedule.
  E) less elastic Iraq's labor force is.

Question 2

Imagine that the economy is at a point on that is below both AA and DD, where both the output and asset markets are out of equilibrium. Which first action is TRUE?
 
  A) The economy will stay at this level in the short run.
  B) The exchange rate will first rise to a point on the AA schedule.
  C) The exchange rate will first rise to a point on the DD schedule.
  D) The AA-DD equilibrium will shift to the position of the economy.
  E) The output level will first increase to a position on the DD schedule.

[tdewitt]

Answer to Question 1

B

Answer to Question 2

B

[tichca]

Thank you

[tdewitt]

Happy to help you