)If the European Union increases tariffs on U.S. goods, this would be Group of answer choices a positive aggregate demand shock and will shift the AD curve to the left a negative aggregate demand shock and will shift the AD curve to the right a negative aggregate demand shock and will shift the AD curve to the left a positive aggregate demand shock and will shift the AD curve to the right

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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a)If the European Union increases tariffs on U.S. goods, this would be

Group of answer choices

a positive aggregate demand shock and will shift the AD curve to the left

a negative aggregate demand shock and will shift the AD curve to the right

a negative aggregate demand shock and will shift the AD curve to the left

a positive aggregate demand shock and will shift the AD curve to the right

 

b)As the price level rises, the exchange rate

Group of answer choices

falls, so exports rise and imports fall.

falls, so exports fall and imports rise.

rises, so exports rise and imports fall.

rises, so exports fall and imports rise.

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