Which of the following would not usually be associated with an exchange rate shock?
A) an increase in the price level
B) a decrease in real GDP
C) a leftward shift of the AS curve
D) an increase in real GDP
E) None of the above

Question

Quizplus · Accepted Answer

An exchange rate shock typically leads to a decrease in real GDP due to the immediate impact on exports and imports, not an increase.

Which of the Following Would Not Usually Be Associated with an Exchange