Apply the AD/AS model to the U.S. economy. The international trade effect is reflected on its _______ and when the price level _________________
a. AS; falls, foreigners buy fewer goods
b. AD; falls, foreigners buy more U.S. goods
c. AS; falls, the aggregate demand curve shifts to the left
d. AS; rises, the aggregate demand curve shifts to the right
e. AS; rises, the supply of U.S.-made goods increases
B
You might also like to view...
If the opportunity cost of producing cheese is higher in Greece than in Italy,
a. Greece should specialize in producing cheese b. Italy should specialize in producing cheese c. both Greece and Italy should produce cheese but Italy should still export cheese to Greece d. Greece gives up fewer goods to produce cheese than Italy does e. both Greece and Italy should produce cheese but Greece should still export cheese to Italy
Capital flows into a country are particularly high, when:
a. Capital restrictions are minimal and the domestic stock market is not well developed. b. Capital flows only depend on relative real risk-free interest rates. c. Capital restrictions are severe and the domestic stock market is highly developed. d. Capital restrictions are minimal and the domestic stock market is highly developed. e. Capital restrictions are severe and the domestic stock market is not well developed.