Other Things Being Equal,when the Domestic Price Level Falls Exogenously

question 123

Multiple Choice

Other things being equal,when the domestic price level falls exogenously,

• A)Canadian goods become more expensive relative to foreign goods.
• B)the net export function shifts upward.
• C)the aggregate expenditure function shifts downward.
• D)imports of foreign goods rise.
• E)the net export function shifts downward.

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Definitions:

Pure Rent

Pure Rent refers to the income earned from the use of land or other natural resources when supply is perfectly inelastic.

Fixed Supply

A situation where the quantity of a good available is constant and does not change in response to price changes.

One-Of-A-Kind

Unique, without any identical counterpart.

Pure Rent

Payment to a factor of production (land, specifically) in excess of what is needed to keep it in its current use.