39 intere. TaskStrexW TaskStre. xh 2123 ADCs PESTLE/ × × Secure https://ecourses

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39 intere. TaskStrexW TaskStre. xh 2123 ADCs PESTLE/ × × Secure https://ecourses pvamu.edu/mod/quiz/attempt php?attempts739005&page-3; eCourses PRAIRIE VIEW A+M HELP 2017_ECON2123P03-1810-13518 My courses ECON2123P03-1810-13518/ Week 10: Nov 6-10 / 2123 AD & AS Bonus Point Quiz Over the past year the U.S. dollar has appreciated (gotten stronger) relative to foreign currency. In the AS Model of an economy, an appreciation of the U.S. dollar causes ered s out of 1 lag Select one: a. U.S. aggregate demand to decrease. (The AD curve shifts down/left) b. U.S. Aggregate supply to increase. (The AS curve shifts righu/down.) c. U.S. Aggregate supply to decrease. (The AS curve shifts leftlup) d. U.S. Aggregate demand to increase. (The AD curve shifts up/right.) Previous page Next page

Explanation / Answer

THe asnwer is A -) U.S aggregate demand to decrease.

because when the U.S dollar appreciates with relative foreign currency, then the value of dollar is become high in relative to foreign currency , which make U.S good expensive. and thus net exports of U.S will decrease as the result there is a fall in real GDP also and thus aggregate demand decrease and aggregate demand curve shift left or downward.

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