When the dollar appreciates,this shifts the AD curve leftward and the SRAS curve rightward,which will typically lead to an unchanged Real GDP.

Question

Quizplus · Accepted Answer

When the dollar appreciates, it makes exports more expensive and imports cheaper, which can reduce net exports and shift the AD curve leftward. However, the SRAS curve does not necessarily shift rightward due to dollar appreciation alone. The overall impact on Real GDP depends on the relative shifts of AD and SRAS.

When the Dollar Appreciates,this Shifts the AD Curve Leftward and the SRAS