Krugman's Economics For The Ap® Course
3rd Edition
ISBN: 9781319113278
Author: David Anderson, Margaret Ray
Publisher: Worth Publishers
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Question
Chapter 17, Problem 7MCQ
To determine
The question requires us to determine to factor effect that changes the real GDP.
Expert Solution & Answer
Explanation of Solution
The aggregate demand curve represents the relationship between the price level and aggregate quantity demanded by households, firms, the government, and foreign nations.
The net export effect or exchange rate effect of a price change is a change in net export when the value of domestic currency changes and causes the relative price of domestically produced goods and services and foreign goods and services to change.
Thus, option “b” is correct.
Chapter 17 Solutions
Krugman's Economics For The Ap® Course
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