The foreign purchases effect suggests that a decrease in the U.S. price level relative to other countries will:
A. shift the aggregate demand curve leftward.
B. shift the aggregate supply curve leftward.
C. decrease U.S. exports and increase U.S. imports.
D. increase U.S. exports and decrease U.S. imports.
D. increase U.S. exports and decrease U.S. imports.
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If a firm's short-run average cost curves are u-shaped, does this imply that the long-run average cost curve must also be u-shaped?
What will be an ideal response?
Keynes (1941) claimed that government spending during wartime could generate a healthy increase in the demand for output, thus raising employment levels and boosting incomes
To avoid inflation, physical rationing, monetary measures and other controls were consequently needed. Indicate whether the statement is true or false
Expressing the U.S. federal budget deficit as a percentage of Gross Domestic Product (GDP)
A) results in inflation-adjusted revenue and expenditure numbers. B) helps us understand the size of the deficit relative to the size of the economy. C) was useful through the 1980s, but is no longer helpful because both the deficit and real Gross Domestic Product (GDP) have grown so large. D) is only useful if the budget deficit is rising at an annual rate of more than 4 percent.
The set of plans for differentiating a product and communicating the differences effectively to the marketplace is called:
a. brand strategy. b. brand marketing. c. branding. d. brand equity.