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Title: When the prices of a country's imports increase, the prices of domestic goods may increase. This ... Post by: PiMaster314 on Apr 29, 2019 Question 1. If two countries don't trade with each other, an increase in the price level in one country ▸ increases the price level in the other country. ▸ decreases the price level in the other country. ▸ increases the price level in the other country then decreases it. ▸ does not affect the price level in the other country. Question 2. When the prices of a country's imports increase, the prices of domestic goods may increase. This occurs because ▸ an increase in the prices of imported inputs will cause aggregate supply to increase. ▸ if import prices rise relative to domestic prices, households will tend to substitute domestically produced goods and services for imports. ▸ if import prices rise relative to domestic prices, households will tend to substitute imports for domestically produced goods and services. ▸ an increase in the prices of imported inputs will cause aggregate demand to decrease. Title: When the prices of a country's imports increase, the prices of domestic goods may increase. This ... Post by: Strategyboyz21 on Apr 29, 2019 Content hidden
Title: When the prices of a country's imports increase, the prices of domestic goods may increase. This ... Post by: PiMaster314 on Apr 29, 2019 Thank you, thank you, thank you!
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