Other Things Being Equal,a Decrease in an Economy's Exports Will

question 98

Multiple Choice

Other things being equal,a decrease in an economy's exports will

• A)increase domestic aggregate expenditures and the equilibrium level of output
• B)decrease domestic aggregate expenditures and the equilibrium level of output
• C)have no impact on domestic aggregate expenditures or output
• D)decrease the marginal propensity to import
• E)change autonomous consumption

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Definitions:

Deadweight Loss

A loss of economic efficiency that can occur when equilibrium for a good or service is not achieved or is not achievable.

Coefficient Of Monopsony

A measure indicating the degree of market power held by a single buyer in a market.

Elasticity Of Supply

A measure of how much the quantity supplied of a good responds to a change in the price of that good, with higher elasticity indicating a greater response.

Bilateral Monopoly

A market structure consisting of only one buyer and one seller, mutually depending on each other.