Suppose that in a new classical model the public anticipates that policymakers will increase aggregate demand. However, aggregate demand increases by less than what the public anticipated. The result in the short run is that Real GDP and the price level .

Which of the following best explains the purpose of protectionist trade policies such as tariffs and subsidies? a. they make sure that governments have enough money to pay for fiscal policies. b. they give foreign competitors access to new markets around the world. c. they allow producers to sell their products more cheaply than foreign competitors. d. they enable producers to purchase productive resources from everywhere in the world.