Ceteris paribus,tariffs and nontariff barriers on imported factor inputs result in
A)An increase in the price level and a decrease in unemployment.
B)An increase in the price level and an increase in unemployment.
C)A decrease in the price level and a decrease in unemployment.

Question

Quizplus · Accepted Answer

Tariffs and nontariff barriers increase the cost of factor inputs for businesses, leading to an increase in the price level of goods and services produced. This, in turn, can result in a decrease in demand for these goods and services, leading to a rise in unemployment.

Ceteris Paribus,tariffs and Nontariff Barriers on Imported Factor Inputs Result