Mauritius, an island off the coast of Africa, competes with other countries producing goods with low- skilled labor. In 2006, it was reported that its "... factories have been exposed to ... competition China, India and other Asian mass producers." As a result, "the main export industry has seen a 30 cent reduction in volume ..."
w.ft.com, 3/13/200
The decrease in exports will cause and the price level will _ .
A) a leftward shift in the AD curve; fall in the short run and rise in the long run
B) an upward shift in the AE curve; increase as the AD curve shifts rightward in the long run
C) a leftward shift in the AD curve; rise in the long run as goods become more scarce
D) a downward shift in the AE curve; decrease as the AD curve shifts leftward in the short run
Correct Answer:
Verified
Q381: Mauritius, an island off the coast of
Q382: In 2007, investment in France increased by
Q383: In an article regarding Bangladesh's economy, the
Q384: "The global financial crisis has had a
Q385: In light of the economic crisis in
Q387: In the third quarter of 2008, investment
Q388: In 2007, investment in France increased by
Q390: Mauritius, an island off the coast of
Q391: In an article regarding Bangladesh's economy, the
Q393: List the four components of aggregate expenditure.
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents