As a Result of a Decrease in the Value of the Dollar

question 134

Multiple Choice

As a result of a decrease in the value of the dollar in relation to other currencies, U.S. imports decrease and exports increase. Consequently, there is a(n) :

• A) increase in short-run aggregate supply.
• B) decrease in the quantity of aggregate output supplied in the short run.
• C) increase in aggregate demand.
• D) decrease in the quantity of aggregate output demanded.

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Definitions:

Economic Clustering

The phenomenon where businesses and industries tend to locate near each other in order to benefit from shared resources, knowledge, and markets.

Labor Productivity

A measure of economic performance calculated by dividing the total output by the number of labor hours used in the production process.

Capital To Labor Ratio

A measurement of the amount of capital employed per unit of labor, often used to understand the level of mechanization or technology used in production.

Capital Goods

Goods that are used in producing other goods, rather than being bought by consumers directly, such as machinery, tools, and buildings used in production.