If the U.S.price level increases,the aggregate quantity of U.S.output demanded
A)decreases because U.S.products become cheaper relative to foreign products
B)decreases because U.S.products become more expensive relative to foreign products
C)increases because U.S.products become cheaper relative to foreign products
D)increases because U.S.products become more expensive relative to foreign products

Question

Quizplus · Accepted Answer

When the U.S. price level increases, U.S. products become more expensive relative to foreign products. This makes foreign products relatively cheaper, leading to a decrease in the aggregate quantity of U.S. output demanded as consumers switch to cheaper foreign goods.

If the USPrice Level Increases,the Aggregate Quantity of U