In a Two-Country World,a Decrease in Foreign Input Prices,ceteris Paribus

question 153

Multiple Choice

In a two-country world,a decrease in foreign input prices,ceteris paribus,

• A) shifts the SRAS curve leftward,causing the price level to increase.
• B) shifts the SRAS curve leftward,causing the price level to decrease.
• C) shifts the SRAS curve rightward,causing the price level to increase.
• D) shifts the SRAS curve rightward,causing the price level to decrease.
• E) does not affect the SRAS curve or the price level.

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