If the USPrice Level Increases Relative to Price Levels in Foreign Countries,_____

question 122

Multiple Choice

If the U.S.price level increases relative to price levels in foreign countries,_____.

• A)the aggregate supply curve for the U.S.will shift outward and the aggregate demand curve would remain unchanged
• B)the aggregate supply curve for the U.S.will shift inward and the aggregate demand curve would remain unchanged
• C)the aggregate demand curve for the U.S.will shift outward and the aggregate supply curve would remain unchanged
• D)the aggregate demand curve for the U.S.will shift inward and the aggregate supply curve would remain unchanged
• E)both the aggregate demand and the aggregate supply curves for the U.S.will shift outward

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Definitions:

Cartels

Formal agreements among competing firms in the same industry aimed at controlling production, fixing prices, and restricting competition.

Production

The procedure involved in producing goods and services.

Federal Budget Deficit

The federal budget deficit occurs when the government's expenditures exceed its revenues in a given fiscal year, leading to borrowing or use of reserves.

Sherman Antitrust Act

A United States antitrust law that outlaws all contracts, combinations, and conspiracies that unreasonably restrain interstate and foreign trade.