Author Question: Which of the following events shifts the aggregate demand curve leftward? A) an increase in ... (Read 62 times)

lb_gilbert · **on:** Jun 29, 2018

Which of the following events shifts the aggregate demand curve leftward?

A) an increase in consumption expenditures
B) a decrease in taxes
C) a decrease in government expenditures on goods and services
D) an increase in net exports of goods and services

Question 2

Given the U.S. price level P, the foreign country price level P, and the nominal exchange rate E expressed in foreign currency per U.S. dollar, the real exchange rate RER is given by

A) RER = E (P/P).
B) RER = E (P/P).
C) RER = (P/P) / E.
D) RER = P / (E/P).