« previous next »

Author Question: Suppose the current situation is such that the price level is 120, real GDP is 17 trillion, and GDP ... (Read 38 times)

clmills979

  • Hero Member
  • *****
  • Posts: 551
on: Jun 29, 2018
Suppose the current situation is such that the price level is 120, real GDP is 17 trillion, and GDP along the long-run aggregate supply curve is 16.6 trillion. What will take place to restore the long-run equilibrium?
 
  A) The price level will fall until long-run aggregate supply increases to 17 trillion.
  B) The price level will fall and money wage rates will rise until real GDP along the long-run aggregate supply curve is 17 trillion.
  C) Money wage rates will rise until real GDP reaches 16.6 trillion.
  D) Aggregate demand will increase until both short-run and long-run aggregate supply equal 17 trillion.

Question 2

How does a tariff affect the government's revenue? How does an import quota affect the government's revenue?
 
  What will be an ideal response?


mfedorka

  • Sr. Member
  • ****
  • Posts: 324
Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

A tariff is a tax on an imported good. Like all taxes, a tariff increases the government's revenue. However, an import quota is quantitative restriction on the amount of a good that can be imported. As such, an import quota has no effect on the government's revenue.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The first war in which wide-scale use of anesthetics occurred was the Civil War, and 80% of all wounds were in the extremities.

Did you know?

A strange skin disease referred to as Morgellons has occurred in the southern United States and in California. Symptoms include slowly healing sores, joint pain, persistent fatigue, and a sensation of things crawling through the skin. Another symptom is strange-looking, threadlike extrusions coming out of the skin.

Did you know?

There can actually be a 25-hour time difference between certain locations in the world. The International Date Line passes between the islands of Samoa and American Samoa. It is not a straight line, but "zig-zags" around various island chains. Therefore, Samoa and nearby islands have one date, while American Samoa and nearby islands are one day behind. Daylight saving time is used in some islands, but not in others—further shifting the hours out of sync with natural time.

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Did you know?

Stevens-Johnson syndrome and Toxic Epidermal Necrolysis syndrome are life-threatening reactions that can result in death. Complications include permanent blindness, dry-eye syndrome, lung damage, photophobia, asthma, chronic obstructive pulmonary disease, permanent loss of nail beds, scarring of mucous membranes, arthritis, and chronic fatigue syndrome. Many patients' pores scar shut, causing them to retain heat.

Nuclear division at the DNA level Nuclear division at the DNA level
Role-Playing a Situation in Which a Patient Is Frightened, Angry, or Anxious Role-Playing a Situation in Which a Patient Is Frightened, Angry, or Anxious
Stand in a doorway and hook your fingertips on both sides about chest level or lower. Stand in a doorway and hook your fingertips on both sides about chest level or lower.
Are reality shows “real”? Does the media tell the “truth”? Are reality shows “real”? Does the media tell the “truth”?
How to use the discriminant to determine the value of k in a quadratic with one real root How to use the discriminant to determine the value of k in a quadratic with one real root
Prove that each of the following real functions f has a discontinuity. For each function, ... Prove that each of the following real functions f has a discontinuity. For each function, ...
Video: Polysaccharides

For a complete list of videos, visit our video library