Other things equal, with imported intermediate goods, an increase in foreign prices will lead to a __________ shift in a home country's short-run aggregate supply curve and__________ shift in the home country's aggregate demand curve.
A) leftward; also to a leftward
B) leftward; to a rightward
C) rightward; to a leftward
D) rightward; also to a rightward

Question

Quizplus · Accepted Answer

The Answer of Other things equal, with imported intermediate goods, an increase in foreign prices will lead to a __________ shift in a home country's short-run aggregate supply curve and__________ shift in the home country's aggregate demand curve.
A) leftward; also to a leftward
B) leftward; to a rightward
C) rightward; to a leftward
D) rightward; also to a rightward

Other Things Equal, with Imported Intermediate Goods, an Increase in Foreign