Historically, the market prices of most natural resources (adjusted for inflation) have

The foreign purchases effect suggests that a decrease in the U.S. price level relative to other countries will:

A. shift the aggregate demand curve leftward. B. shift the aggregate supply curve leftward. C. decrease U.S. exports and increase U.S. imports. D. increase U.S. exports and decrease U.S. imports.

Assume a market that has an equilibrium price of $5. If the market price is set at $9, producer surplus:

A. decreases for some producers because of fewer transactions taking place. B. rises for some producers because of the increased price. C. Both A and B are true. D. Neither of these statements is true.