A decrease in the price level in an economy will
What will be an ideal response?
stimulate U.S. exports but discourage imports, causing a downward movement along a given aggregate demand curve
"A decline in the U.S. price level, other things constant, will make U.S. products cheaper abroad and foreign products relatively more expensive in the U.S. Therefore, a decrease in the price level will stimulate U.S. exports but discourage imports, and there will be a downward movement along the aggregate demand curve."
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Refer to Figure 12-17. Which of the following statements is true?
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Answer the following statement true (T) or false (F)