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:

Unpaid Child Care

The provision of care to children without receiving financial compensation, often performed by family members.

Emotional Work

The effort put into managing and regulating one’s own emotions or those of others in various contexts, often to fulfill societal or occupational roles.

Breadwinner

The primary income earner in a household, responsible for supporting the financial needs of the family.

Peer Group

People who are similar in age, social status, and interests.