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

question 168

Multiple Choice

If the U.S. price level decreased 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:

Departmentalization

The grouping of jobs into working units usually called departments, units, groups, or divisions.

Dissatisfaction

A feeling of unhappiness or discontentment arising from unmet expectations or experiences.