Everything Else Held Constant,a Shift in Tastes in the U

question 67

Multiple Choice

Everything else held constant,a shift in tastes in the U.S. towards American goods will ________ net exports in the U.S. and cause the quantity of aggregate output demanded to ________ in Mexico.

• A)decrease;rise
• B)decrease;fall
• C)increase;rise
• D)increase;fall

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Definitions:

Bankrupt

A legal status of a person or entity that cannot repay debts to creditors and is thus subject to specific legal processes.

Life Expectancy

The average number of years an individual is expected to live, based on current mortality rates.

Production Costs

The total expenses incurred in the manufacturing of a product, including labor, materials, and overhead costs.

Short-run Economic Profits

Profits earned by a firm in the short run, where not all inputs can be varied and some fixed costs are still incurred.