An increase in the incomes of the countries that purchase U.S.-made products will cause a(n) _____ in the _____ U.S.-made products.
A) decrease; aggregate demand for
B) increase; short-run aggregate supply of
C) increase; aggregate demand for
D) decrease; short-run aggregate supply of

Question

Quizplus · Accepted Answer

An increase in the incomes of countries that purchase U.S.-made products will lead to an increase in the aggregate demand for U.S.-made products, as higher incomes typically lead to increased consumption and demand for goods.

An Increase in the Incomes of the Countries That Purchase