Ask Question
9 October, 07:27

What happens in the short run when people in a country purchase more imported goods and few domestic goods? A) The trade balance will be unaffected and the equilibrium income will decrease B) The trade balance moves toward a surplus and the equilibrium income will decrease. C) The trade balance moves toward a deficit and the equilibrium income will decrease. D) The trade balance moves toward a deficit and the equilibrium income will increase.

+4
Answers (2)
  1. 9 October, 08:48
    0
    The correct answer is letter "C": The trade balance moves toward a deficit and the equilibrium income will decrease.

    Explanation:

    If in an economy people import more products than the quantity they export, the trade balance will fluctuate towards imports. This will cause domestic products to be less demanded. As fewer domestic production is needed, less labor hand will be necessary which leads to an increasing rate in unemployment and a decrease in people's income.
  2. 9 October, 11:17
    0
    Answer: the answer is C
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “What happens in the short run when people in a country purchase more imported goods and few domestic goods? A) The trade balance will be ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers