The Microeconomic Reasoning of the Production Possibilities Curve Suggests That

question 57

Multiple Choice

The microeconomic reasoning of the production possibilities curve suggests that an increase in trade protection tends to ________ output,but the short-run macroeconomic reasoning of the Keynesian cross diagram suggests that an increase in trade protection may ________ output.

• A) increase;increase
• B) increase;decrease
• C) decrease;increase
• D) decrease;decrease
• E) not change;not change

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