When the domestic price level increases, exports decrease and imports increase. Other things the same, this change is illustrated by a
A) movement upward along the aggregate demand curve.
B) movement downward along the aggregate demand curve.
C) rightward shift of the aggregate demand curve.
D) leftward shift of the aggregate demand curve.
E) rightward shift of the aggregate supply curve.
A
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If the expected inflation rate was 2.5%, the expected real interest rate was 4.0%, and the actual inflation rate turned out to be 3.2%, then the real interest rate equals
A) 1.7%. B) 3.2%. C) 3.3%. D) 4.7%.
Marginal utility: a. generally increases as more of a good is acquired
b. generally remains constant as more of a good is acquired. c. generally decreases as more of a good is acquired. d. begins to fall when total utility reaches its highest point.
Suppose GDP is $4,000 billion and aggregate expenditure is $3,750 billion. Inventories will
a. increase by $250 billion b. increase by $375 billion c. increase by $400 billion d. decrease by $250 billion e. decrease by $375 billion
When markets open up to international trade, we know that consumer surplus will rise
a. True b. False Indicate whether the statement is true or false