Top Posters
Since Sunday
5
o
5
4
m
4
b
4
x
4
a
4
l
4
t
4
S
4
m
3
s
3
New Topic  
PiMaster314 PiMaster314
wrote...
Posts: 423
4 years ago

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.
Textbook 
Principles of Economics

Principles of Economics


Edition: 12th
Authors:
Read 59 times
2 Replies
Replies
Answer verified by a subject expert
Strategyboyz21Strategyboyz21
wrote...
Posts: 370
4 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

PiMaster314 Author
wrote...
4 years ago
Thank you, thank you, thank you!
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  1205 People Browsing
Related Images
  
 688
  
 237
  
 387
Your Opinion
Which 'study break' activity do you find most distracting?
Votes: 741

Previous poll results: Where do you get your textbooks?