In reality, if a nation imposes tarrifs, then the final result will be that:
A)net exports and GDP will increase.
B)net exports and GDP will decrease.
C)there will be is no long term effect on net exports and GDP.
D)there will be a decrease in imports and an increase in GDP.

Question

Quizplus · Accepted Answer

When a nation imposes tariffs, it makes imports more expensive and less competitive with domestic products. As a result, there is a decrease in demand for imports, which leads to a decrease in net exports. This decrease in net exports leads to a decrease in GDP as well, since GDP is a measure of a country's total economic output. Therefore, the best choice is B, net exports and GDP will decrease, as seen in historical evidence and economic studies.

In Reality, If a Nation Imposes Tarrifs, Then the Final