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

question 84

Multiple Choice

If the U.S. price level increased 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:

Dominance Structuring

The psychological process through which humans achieve confidence in their decisions. The four phases of dominance structuring are pre-editing, identifying one promising option, testing that promising option for dominance, and structuring the dominance of the option selected.

Psychological Process

Pertains to the cognitive, emotional, and behavioral functions and activities of the mind.

Dominance Structuring

The organization or arrangement of elements in a group or system based on a hierarchy of power, importance, or influence.