Multiple Choice
The change in the domestic price level that causes consumers to substitute into or out of relatively cheaper or relatively more expensive imported goods is called
A) the substitution-of-foreign-goods effect.
B) the wealth effect or real-balances effect.
C) the constant nominal income effect.
D) long-run equilibrium.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: The economy is in long-run equilibrium when<br>A)an
Q3: In the AD/AS framework, an unexpected increase
Q4: Which of the following is likely to
Q5: In the short run, if aggregate demand
Q6: Which of the following phrases best describes
Q7: Net exports are _ related to the
Q8: As a component of aggregate demand, government
Q9: In the short run, if aggregate demand
Q10: Starting from long-run equilibrium, an increase in
Q11: The vertical curve through the natural rate