If the U.S. price level decreased relative to price levels in foreign countries, what would be the impact on domestic aggregate supply and aggregate demand curves?
a. the aggregate supply curve would shift outward and the aggregate demand curve would remain unchanged
b. the aggregate supply curve would shift inward and the aggregate demand curve would remain unchanged
c. the aggregate demand curve would shift outward and the aggregate supply curve would remain unchanged
d. the aggregate demand curve would shift inward and the aggregate supply curve would remain unchanged
e. the domestic aggregate demand and supply curves would remain unchanged
C
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The simple multiplier formula assumes the following, except that
A. the economy has excess capacity and room to expand output. B. firms will raise prices as buyers buy more of their output. C. business firms will increase production if demand for their output increases. D. people will spend more if they earn additional income.
What is a perfectly competitive firm's short-run supply curve?
What will be an ideal response?
The marginal propensity to consume (MPC) is the change in consumption divided by the change in saving
a. True b. False Indicate whether the statement is true or false
Which of the following would be the most typical behavior for landlords renting rent-controlled apartments?
a. financing the construction of more housing b. earning large profits from rentals c. lowering the rents for apartments d. avoiding routine maintenance