When the Domestic Price Level Increases,exports Decrease and Imports Increase

question 248

Multiple Choice

When the domestic price level increases,exports decrease and imports increase.Other things the same,this change is illustrated by a

• A)movement upward along the aggregate demand curve.
• B)movement downward along the aggregate demand curve.
• C)rightward shift of the aggregate demand curve.
• D)leftward shift of the aggregate demand curve.
• E)rightward shift of the aggregate supply curve.

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Definitions:

Merchandise

Goods that are bought and sold within the retail industry.

Sales on Account

Transactions where goods or services are sold with the agreement that payment will be made at a later date, creating an account receivable.

Capital Expenditures

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.

Operating Expenses

Costs associated with the daily operations of a business, excluding the cost of goods sold.