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:

Anxious Temperament

A predisposition to respond to situations with fear or anxiety, often resulting from genetic or environmental factors.

Anxiety Disorders

A group of mental health disorders characterized by significant feelings of anxiety and fear, impacting daily living.

Behaviourally Inhibited

Describes individuals who demonstrate a consistent pattern of shyness, fearfulness, and withdrawal from unfamiliar people, situations, or environments.

Temperamentally Bold

Refers to individuals who show a natural tendency to be fearless, adventurous, and confident in unfamiliar situations.