People sometimes argue that imports should be limited by government policy. Suppose a government quota on the quantity of imports causes net exports to rise. Using the circular flow diagram as a guide, explain why total expenditures and national output may rise after the quota in imposed. Who is likely to benefit from the quota? Who will be hurt?

What are variables that affect AS (also considered the Supply side of GDP)?

What is the difference between aggregate expenditure and aggregate demand? Why is the aggregate demand curve downward sloping while the aggregate expenditure line is upward sloping?

Calculate total GDP for this economy given the following components of demand. Round your answer to the nearest tenth and enter the value in trillions of dollars. Components of GDP on the Demand Side (in trillions of dollars) Consumption Investment Government spending Exports Imports Provide your answer below: trillion Total GDP 12.9 3.8 4.2 3.0 4.2 ?

In the following table, you are given the following parameters for the economy of Atris: C = 100 + 0.85Y I = 300 G = 150 X = 60 IM = 10 + 0.05Y a) What is the value of expenditures equilibrium? b) What is the value of total leakages and injections at expenditures equilibrium? c) Suppose autonomous expenditure increases by $25. What is the new value of expenditure equilibrium?

Using the domestic goods demand and net exports graphs, illustrate graphically and explain the effects of a decrease in taxes on output, exports, imports, and net exports. Label all the curves, the initial and new equilibrium points.

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the question is true or false: "An increase in business investment spending has the same effect on the level of ad as an increase in the same amount of government spending" can you explain what the answer is? Would they equal each other out?

An economy is described by the following equations: C=150+0.5 YD I=150 G=200 T=? What is the value of Taxes T, so that the equilibrium level of output (Y*) in this economy is equal to 90O? (Show your workings)

Use the following graph to answer the next question. Price Level AS3 AS₁ 0 Real Domestic Output, GDP Which of the following factors will shift AS₁ to AS2? AS₂ A) A decrease in business subsidies B) An increase in input prices OC) A decrease in business taxes D) An increase in real interest rates