Tariffs ________ the Domestic Price of the Good and Import

question 168

Multiple Choice

Tariffs ________ the domestic price of the good and import quotas ________ the domestic price of the good.

• A) lower; lower
• B) lower; raise
• C) raise; lower
• D) raise; raise

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Definitions:

Aggregate Supply

The total supply of goods and services that firms in an economy are willing to produce and sell at a given overall price level, during a certain time period.

Aggregate Demand

Total inclination for products and services within an economic system, priced at a determined aggregate price level over an appointed period.

Price Level

The general level of prices for goods and services in an economy at a specific point in time.

Short Run

A period in economics characterized by fixed factors of production, where only some inputs or resources can be adjusted or varied.