Suppose the U

question 181

Multiple Choice

Suppose the U.S. is a major importer of Japanese automobiles. All other things unchanged, a Jdecrease in subsidies granted by the Japanese governments to its auto manufacturers will

• A) increase U.S. net exports and shift the aggregate demand curve to the right.
• B) decrease U.S. net exports and shift the aggregate demand curve to the right.
• C) increase U.S. net exports and shift the short-run aggregate supply curve to the left.
• D) decrease U.S. net exports and shift the short-run aggregate supply curve to the left.

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Definitions:

Prior Period Adjustments

Corrections of errors in financial statements of previous periods or adjustments for changes in accounting policies.

Net Losses

The amount by which a company's expenses exceed its revenues over a specific period, indicating a financial loss.