As the U.S. dollar appreciates against foreign currencies, the U.S. ______ curve shifts _ resulting in a(n) _ in the U.S. price level and a(n) _______ in Real GDP in the United States.

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03-11-2020
Business

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As the U.S. dollar appreciates against foreign currencies, the U.S. ______ curve shifts _ resulting in a(n) _ in the U.S. price level and a(n) _______ in Real GDP in the United States.

Respuesta :

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jepessoa jepessoa · Answer 1 · 2020-11-04T02:35:32+01:00

Answer:

As the U.S. dollar appreciates against foreign currencies, the U.S. AGGREGATE DEMAND curve shifts LEFTWARD resulting in a(n) DECREASE in the U.S. price level and a(n) DECREASE in Real GDP in the United States.

Explanation:

If the US dollar appreciates, it will reduce American exports and increase imports. Since exports fall, the aggregate demand curve will shift to the left. A leftward shift in the AD curve will result in lower total output and a lower price level. Since the price level decreases, exports decrease and imports increase, the real GDP will decrease.

As the U.S. dollar appreciates against foreign currencies, the U.S. ____________ curve shifts _____________ resulting in a(n) _________________ in the U.S. price level and a(n) _________________ in Real GDP in the United States.

Respuesta :

Otras preguntas

As the U.S. dollar appreciates against foreign currencies, the U.S. ______ curve shifts _ resulting in a(n) _ in the U.S. price level and a(n) _______ in Real GDP in the United States.