Other Things Equal, with Imported Intermediate Goods, an Increase in Foreign

question 6

Multiple Choice

Other things equal, with imported intermediate goods, an increase in foreign prices will lead to a __________ shift in a home country's short-run aggregate supply curve and__________ shift in the home country's aggregate demand curve.

• A) leftward; also to a leftward
• B) leftward; to a rightward
• C) rightward; to a leftward
• D) rightward; also to a rightward