If the US Price Level Decreased Relative to Price Levels in Foreign

question 168

Multiple Choice

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

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Definitions:

Functional Behavior

Behavior that is considered pragmatic and adaptive, helping individuals to achieve goals efficiently in their environment.

Abnormality

A deviation from the average or norm that may indicate a pathology or condition requiring attention or treatment.

Developmental Disorder

A developmental disorder is a group of psychiatric conditions originating in childhood that involve serious impairment in different areas.

Abnormal Behavior

Actions or behaviors that deviate significantly from what is considered typical or normal within a society or cultural context.