All Other Things Unchanged, What Happens If the U

question 132

Multiple Choice

All other things unchanged, what happens if the U.S. reduces its quota on sugar imports?

• A) Net exports increases and shifts the short-run aggregate supply curve to the right.
• B) Net exports decreases and shifts the short-run aggregate supply curve to the right.
• C) Net exports increases and shifts the aggregate demand curve to the right.
• D) Net exports decreases and shifts the aggregate demand curve to the left.

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Definitions:

Fixed Cost

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance, over a specified period.

High-Low Method

A technique in managerial accounting used to estimate fixed and variable costs by analyzing the highest and lowest levels of activity and the associated costs.

Variable Cost

Expenses that change in proportion to the activity of a business such as raw materials and direct labor costs.

Fixed Cost

Payments that do not vary with the amount of production or sales activities, including costs like renting spaces, salary payouts, and insurance contributions.