A falling aggregate price level _____ demand for a country's exports and therefore _____ output demanded.
A) increases; increases
B) increases; reduces
C) reduces; increases
D) reduces; reduces

Question

Quizplus · Accepted Answer

A falling aggregate price level makes a country's goods cheaper relative to foreign goods, increasing demand for its exports and therefore increasing the output demanded.

A Falling Aggregate Price Level _____ Demand for a Country's