Asked by Zachary Smith on May 19, 2024
Verified
If the U.S.price level increases relative to price levels in foreign countries,_____.
A) the aggregate supply curve for the U.S.will shift outward and the aggregate demand curve would remain unchanged
B) the aggregate supply curve for the U.S.will shift inward and the aggregate demand curve would remain unchanged
C) the aggregate demand curve for the U.S.will shift outward and the aggregate supply curve would remain unchanged
D) the aggregate demand curve for the U.S.will shift inward and the aggregate supply curve would remain unchanged
E) both the aggregate demand and the aggregate supply curves for the U.S.will shift outward
Price Level
A general price average spanning the full range of goods and services in an economy.
Aggregate Supply Curve
A visual depiction that illustrates the overall amount of products and services that producers in an economy can and are willing to offer across various price points.
Aggregate Demand Curve
A curve that shows the total demand for goods and services within an economy at various price levels, typically illustrating an inverse relationship between price level and output demanded.
- Recognize the causes behind the fluctuations in aggregate demand and aggregate supply curves.
- Recognize the impact of international factors, such as exchange rates and foreign price levels, on the domestic economy.
Verified Answer
Learning Objectives
- Recognize the causes behind the fluctuations in aggregate demand and aggregate supply curves.
- Recognize the impact of international factors, such as exchange rates and foreign price levels, on the domestic economy.
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