If the effective rate of protection is greater than the nominal rate of protection, there must be tariffs on intermediate products.
Indicate whether the statement is true or false
Question 2 - Suppose the Asian financial crisis decreased U.S. exports. In the aggregate demand/aggregate supply model, this would be represented as
A) a shift to the right of aggregate supply, which would result in more production for the U.S. economy.
B) a shift to the left of aggregate supply, which would result in less production for the U.S. economy.
C) a shift to the right of aggregate demand, leading to more spending and production in the U.S. economy.
D) a shift to the left of aggregate demand, leading to less spending and production in the U.S. economy.
Question 3 - The difference between a country's Gross National Product (GNP) and its Gross Domestic product (GDP) is that
A) GNP refers to production within the nation while GDP refers to production by domestic factors no matter where they are located.
B) GNP is always bigger than GDP.
C) GDP refers to production within the nation while GNP refers to production by domestic factors no matter where they are located.
D) Two of the above are true.
Question 4 - If consumption spending increases because people feel more confident about the future,
A) aggregate demand will shift to the left.
B) aggregate demand will shift to the right.
C) aggregate supply will shift to the left.
D) aggregate supply will shift to the right.
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