The Open Economy Effect Refers to the Fact That

question 254

Multiple Choice

The open economy effect refers to the fact that

• A) the position and shape of the long run aggregate supply curve is partially due to the fact that we import goods.
• B) the aggregate supply curve shifts when the economy grows.
• C) the slope of the aggregate demand curve is partially explained by the reduction in the desire to buy fewer U.S. goods by U.S. residents and foreign residents as a result of a higher price level.
• D) the immigration policies of the United States are disruptive to labor markets.

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Definitions:

Illegal Squatting

Refers to the occupation of land or property without the permission of the owner or legal authority.

Dark Horse

A less-known individual or entity that emerges to prominence in a competition or situation unexpectedly.

James K. Polk

The 11th President of the United States (1845-1849), known for his expansionist policies that led to the acquisition of territories such as Oregon and parts of what is now southwestern United States.