A shift away from expenditures on domestic goods and a shift ...

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A shift away from expenditures on domestic goods and a shift toward expenditures on foreign goods when the domestic price level increases is known as
 
  A) the interest rate effect. B) demand side inflation.
  C) the real-balance effect. D) the open economy effect.

Question 2

Real GDP refers to GDP adjusted:
 
  A) for changes in ruling political party. B) for changes in tax rates.
  C) for changes in net imports. D) for changes in prices.

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Answer to Question 1

D

Answer to Question 2

D