Switzerland imports over 90% of its consumption of wheat. If the price of wheat decreases, Switzerland's

Question

Quizplus · Accepted Answer

A decrease in the price of wheat will likely lead to an increase in the quantity of wheat supplied, which will shift the aggregate supply curve to the right. This will lead to a decrease in the price level and an increase in real GDP, as Switzerland can now import more wheat for the same amount of money.

Switzerland Imports Over 90% of Its Consumption of Wheat