Suppose the dollar appreciates in the foreign exchange markets.What is the impact on U.S.Real GDP?
A) It must rise because dollar appreciation shifts the U.S.AD curve leftward.
B) It must fall because dollar appreciation shifts the U.S.SRAS curve rightward.
C) It must remain constant since dollar appreciation does not affect either the U.S.AD curve or the U.S.SRAS curve.
D) It may rise,fall,or remain constant depending on whether the U.S.AD curve shifts leftward by more,less,or an amount equal to the rightward shift of the U.S.SRAS curve.
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