If the U.S. aggregate price level rises
A) U.S. imports rise.
B) the aggregate demand curve shifts to the left.
C) the aggregate demand curve shifts to the right.
D) business investment increases.

Question

Quizplus · Accepted Answer

When the U.S. aggregate price level rises, it generally makes foreign goods and services cheaper in comparison to domestic goods and services. This can lead to an increase in imports as consumers and businesses look for more cost-effective options abroad.

If the U.S. Aggregate Price Level Rises