If the Price of Imported Inputs Suddenly Rises

question 19

Multiple Choice

If the price of imported inputs suddenly rises,

• A) we buy less, so aggregate demand falls
• B) we pay more for the same quantity, so aggregate demand rises
• C) we substitute domestic sources of inputs, so aggregate demand rises
• D) our ability to produce is reduced, so aggregate supply shifts inward
• E) GDP in unaffected because imports are netted out of gross domestic product

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Definitions:

Secure

The condition of being protected from or not exposed to danger, risk, or anxiety.

Difficult Child

A term reflecting a child's temperament that is characterized by irregular bodily functions, withdrawal from new situations, and a tendency to react negatively and intensely.

Slow-To-Warm-Up

A temperament where individuals are cautious, shy, and introverted at first but become more social and comfortable over time.

Regular

Conforming to a standard; usual, typical, or expected in nature or occurrence.