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If Congress removes all tariffs on Chinese products in response to a new free trade agreement with China, then


imports will decrease.


aggregate supply will shift left.


aggregate demand will shift left.


resources will be used more efficiently.


fewer Chinese goods and services will be sold.


**I put that resources will be used more efficiently, but i'm not sure

Verified Answer :

fewer Chinese goods and service will be sold

amniotecardamom

Answer:

resources will be used more efficiently.

Explanation:

If such an agreement is made between China and the US, these nations tend to reap the benefits of free trade, where each country will specialize in producing those goods in which it gains relative advantage. Relative advantage is a measure of efficiency in the use of productive resources. If a country has a relative advantage, it means that it is the technology-holding country capable of rationalizing the use of inputs to the best of its ability to increase productivity. Thus, each country can specialize in goods that have a relative production advantage and import goods in which another country has that advantage. In the end, everyone wins.