A weak dollar will net exports and shift the AD curve to the increase, right dec
ID: 1206884 • Letter: A
Question
A weak dollar will net exports and shift the AD curve to the increase, right decrease left increase, left decrease right. Question 29 Long-run aggregate supply is while short-run aggregate supply is vertical; horizontal horizontal, vertical vertical, upward sloping O upward sloping, vertical horizontal, upward sloping upwaro sloping honzontal Question 30 Business cycles examine time honzons. while growth theory focuses on time horizons short-run. long-run long-run. short-run Both focus on short-run time horizons Both focus on long-run time honzons.Explanation / Answer
Answer 28:
Weak dollar will make the dollar cheaper as compared to other currencies. Thus, it will increase Total exports and reduce Total imports. Thus, increase net exports . Net exports is a component of aggregate demand and thus will increase aggregate demand in the economy.(Option A)
Answer 29 :
Long run AS is vertical at potential level of GDP and SRAS curve is upward sloping. (Option c)
Answer 30:
Business cycle examines short run time horizons while growth theory focuses on long run time horizons. Option A.