When the economy suffers a permanent negative supply shock and the central bank responds by changing the autonomous component of monetary policy to keep inflation at the target inflation rate, then

Suppose the price of an iPad is $500 in the U.S, and 30,000 rupees in India. If an iPad is representative of average prices within a country, then the price of a basket of goods worth $1 in the U.S. costs ________

A) 100 rupees in India B) 60 rupees in India. C) 2 rupees in India D) 0.17 rupees in India

When the price level falls

A. there is no impact on imports or exports, so there is no associated movement along the aggregate demand curve. B. imports decrease and exports increase, which cause a movement down along the aggregate demand curve. C. imports increase, and exports decrease, which causes a movement up along the aggregate demand curve. D. imports decrease and exports increase, which cause a movement up along the aggregate demand curve.