As the U.S.dollar appreciates,the U.S.____________ curve shifts _____________ resulting in a(n)_________________ in the U.S.price level and a(n)_________________ in Real GDP in the United States.
A) AD; leftward; decrease; decrease
B) AD; rightward; increase; increase
C) SRAS; rightward; decrease; increase
D) SRAS; leftward; increase; decrease

Question

Quizplus · Accepted Answer

As the U.S. dollar appreciates, the exports become more expensive which leads to a decrease in net exports. This caused by a leftward shift in the AD (Aggregate Demand) curve. It results in a decrease in the U.S. price level and a decrease in real GDP in the United States due to a decrease in consumption and investment.

As the USDollar Appreciates,the U