The short-run aggregate supply curve is upward sloping because in the short run the
A) money wage rate changes but the price level does not.
B) price level changes but the money wage rate does not.
C) both the money wage rate and the price level change.
D) neither the money wage rate nor the price level can change.
Question 2
When the U.S. exchange rate rises, foreign goods become ________ and U.S. imports ________.
A) less expensive; increase
B) more expensive; decrease
C) less expensive; decrease
D) more expensive; increase
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