As the U.S. dollar appreciates, the U.S. ______ curve shifts _ resulting in a(n) ___________ in the U.S.

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As the U.S. dollar appreciates, the U.S. ______ curve shifts _ resulting in a(n) ___________ in the U.S.

price level and a(n) _________________ in Real GDP in the United States.
a. AD; leftward; decrease; decrease
b. AD; rightward; increase; increasec. SRAS; rightward; decrease; increased.
d. SRAS; leftward; increase; decrease

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1 answer:

Maslowich · Answer 1 · 2022-05-31T10:27:10+03:00

Answer: a. AD; leftward; decrease; decrease.

Explanation:

If the dollar appreciates (the exchange rate increases), the relative price of domestic goods and services increases while the relative price of foreign goods and services falls. Also, the change in relative prices will decrease U.S. exports and increase its imports.

Aggregate demand shift leftward.

As the U.S. dollar appreciates, the U.S. ____________ curve shifts _____________ resulting in a(n) _________________ in the U.S.

As the U.S. dollar appreciates, the U.S. ______ curve shifts _ resulting in a(n) ___________ in the U.S.