ollowing would definitely cause a decrease in the price level for the U.S.? a transition from peace to war and a decrease in productivity an increase in interest rates and a good supply shock involving electricity an increase in wages and an appreciation of the U.S. dollar an expectation by business owners of worse business conditions and an increase in wages an increase in the cost of oil and an increase in tax rates

Q: Assume the economy is in equilibrium. If the interest rate falls, what sequence of events will…

A: Economics:It is a subject matter that focuses on the rational management of scarce resources that…

Q: An increase in personal income taxes would lower net exports and shift the AD curve to right…

A: ***Since you've posted multiple independent McQs, according to our guidelines, only the first McQ is…

Q: (a) In order to get out of recession, the government chooses to reduce taxes (T) by 250. Find the…

A: In IS LM Model, equilibrium is established at such interest rate where goods market and money market…

Q: How would the Canadian economy be different if the United States had not been one of our most…

A: The economies of Canada and the United States are comparative since they are both developed…

Q: in increase in the demand for US goods imported into South africa will have the following impact in…

A: Foreign exchange: - Foreign exchange is the exchange of currency or it means the buying or selling…

Q: Will a direct increase in the price of U.S. goods relative to foreign goods lead to a change in the…

A: Direct increase in the price of U.S goods relative to foreign goods will lead to fall in consumption…

Q: QUESTION 15 Which of the following will cause the Australian dollar (AUD) to appreciate against the…

A: The overall quantity demanded in a market is the product of the individual quantities that each and…

Q: Using the Aggregate Demand and Supply model, demonstrate the impact on the Korean economy of a set…

A: Aggregate demand (AD) is the total demand for goods and services in an economy at a given price…

Q: Globalization tends to:   Group of answer choices   increase the labor demand for exporting…

A: Globalization is defined as the integration of one economy with the rest of the world. With the help…

Q: When countries have many unemployed or unused resources, they may restrict imports to employ or use…

A: Protectionism:Protectionism refers to government policies and measures that restrict international…

Q: India is expected to be the world's fastest-growing economy this year, 2023. If current trends…

A: Economic development is the process of enhancing a community's or nation's economic prosperity and…

Q: Countries with the highest ratios of trade to GDP, calculated as (imports + exports)/2, tend to…

A: b Highest gains from trade   Trade-to-GDP ratio is refer to the indicator in the relative…

Q: If the total of a nation's imports are subtracted from the total of a nations exports, the result…

A: ANS If the total of the nation’s imports is subtracted from the total of a nation’s exports, then we…

Q: "In an economy with a high dependency on imported oil, what is the likely macroeconomic impact of a…

A: When the value of imports and exports in an economy is equal, the condition is known as the trade…

Q: What do the wealth and foreign trade effects have in common? They both help to explain: shifts in…

A: Aggregate demand curve represents quantity demanded corresponding to different price level.Change in…

Q: Use the AE model to explain and show the impact of an autonomous fall in the value of goods exported…

A: The change in the export and import would affect the net export of country, so the aggregate demand…

Q: Discuss why price levels are on average lower in emerging markets than in industrialised economies.

A: The nations around the globe are involved in various economic, and financial activities. The…

Q: True or false questions. Need both. GDP measures the gap between a country's exports and its…

A: "Gross domestic product (GDP) measures the monetary value of the final products or services produced…

Q: The economy of Ghana is undergoing a crisis following COVID-19 and the invasion of Ukraine by…

A: African economic development is an intricate affair that is that depends on an assortment of…

Q: Suppose that εD = 0.70 and ε_D^F = 0.50 for a given country: Suppose that the foreign currency price…

A: The quantity of exports that are demanded in response to a change in the price of exports is…

Q: If speculators bid up the value of the U.S. dollar in the market for foreign exchange, then   U.S.…

A: The exchange rate appreciates when the value of domestic currency increases relative to foreign…

Q: Suppose there is a real depreciation of the domestic currency. This real depreciation will cause:an…

A: Currency represents the country's value during the trade between the markets. During an…

Q: Mexico and the United States are trade partners. Each country has a zero current account balance and…

A: The objective of the question is to understand the impact of changes in inflation rates, national…

Q: Consider an economy (with no international trade) in which the price level is constant where C = 500…

A: The equilibrium level of GDP is that point where the AE (aggregate expenditure) which is a straight…

Q: A Canadian manufacturer starts exporting its products to the United States of America. Which of the…

A: Here, it is given that the Canadian manufacturer makes an export of its products to the US of…

Q: The trade feedback effect shows that O A 50 million dollar increase in U.S. exports results in a 30…

A: Trade feedback is considered the process of analyzing the data from trading activities with their…

Q: Bernhofen and Brown 2004 tests one important implication of Ricardo's model: The value of imports…

A: In the international market, Ricardo's model of comparative advantage provides information about…

Q: The balance on the financial account consists of:   a. the inverse of the balance on the current…

A: Financial account is the part of the balance of payments that records purchases of assets a country…

Q: Real Interest Rate World interest rate, fo Supply of Loanable Funds X Demand for Loanable Funds…

A: Investment spending makes a considerable contribution to Real GDP. Not only is physical capital…

Q: Suppose after five years of sluggish growth, the economy of the European Union picks up speed.  What…

A: The GDP is the summation of the money value of all the final goods and services produced within the…

Q: Suppose that a vaccine manufacturing company owned entirely by U.S. citizens opens a new facility in…

A: a)Foreign direct investment. b)Canada GDP would increase and U.S GDP would be unaffected.

Q: Consider the following model of an economy with no international trade, and in which the price level…

A: The consumption of the economy, the planned investment and the government expenditure along with the…

Q: You are told that Canada conducts much international trade with the United Kingdom. However, the…

A: International trade refers to the exchange of products and services between different nations. The…

Q: If Canada increase its export of lithium, in such a way that national exports would increase, would…

A: When talking about imports-exports,it can be said that more exports will increase national output,…

Q: Discuss why price levels are on average lower in emerging markets than in industrialised economies.

A: The economies around the world work with the motive of enhancing, and maximizing the level of their…

Q: How to increase or decrease government spending to achieve trade balance ( NX=0

A: Trade balance refers to the difference between export and import and such difference is zero. The…

Q: Which of the following is most likely to cause a leftward shift of the demand curve for the Chinese…

A: Demand curve for the Chinese Yuan to the US dollar depicts the inverse relationship between the…

Q: Which of the following will result in a surplus in the BOP? Select one: a. Capital Outflows greater…

A: Balance of payment refers to the account which maintains all the international transactions of a…

Q: In the summer of 2018, you took a vacation and visited several destinations in France, including the…

A: The balance of trade, also known as the commercial balance or net exports, is the monetary value…

Q: Suppose policy makers want to increase net exports (NX) and keep output (Y) constant. Which of the…

A: The difference in the value of a nation's imports and exports is known as net exports or NX. The…

Q: The falling American Economy will: (choose right answer) a:not affect China because of its low…

A: US economy and Chinese Economies are interlinked to each other . These economies  share large…

Q: The exchange rate is the price of one currency in terms of another currency. An exchange rate…

A: Currency fluctuations are a natural result of most major economies' use of variable exchange rates.…

Q: As the domestic price level falls domestic citizens will import less and direct spending to…

A: Aggregate demand is negatively sloped showing inverse relationship between price and real GDP.

Q: 58. Your text has a discussion of various ways nations can skew income, roduction, and price-level…

A: The answer is- b. To avoid lower credit ratings or ease concerns of foreign investors.