If Trade Policies Change, Aggregate Expenditure Will Likely

question 62

Multiple Choice

If trade policies change, aggregate expenditure will likely:

• A) increase.
• B) decrease.
• C) remain constant.
• D) The effect on aggregate expenditure depends on the policy.

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Definitions:

Nonrenewable Resource

Natural resources such as coal, oil, and natural gas that cannot be replenished within a human lifetime once consumed.

Mining Firm

A company involved in the extraction of minerals, ores, and other geological materials from the earth.

Renewable Resource

A natural resource that can be replenished at the same rate or faster than it is consumed, such as solar energy, wind, or timber.

Harvesting

The process of gathering mature crops from the fields or collecting the elements of a crop, such as grains, fruits, or vegetables.