As the U.S.dollar appreciates against foreign currencies,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

An appreciation of the U.S. dollar leads to a leftward shift in the AD curve as exports become more expensive and imports become cheaper. This results in a decrease in the U.S. price level and a decrease in Real GDP due to reduced demand for U.S. goods and services.

As the USDollar Appreciates Against Foreign Currencies,the U