Multiple Choice
A country decides to depreciate its currency. In the short run _____, but in the long run _____.
A) imports will increase aggregate supply; exports will increase aggregate demand
B) exports will increase aggregate demand; rising costs of imported inputs will decrease aggregate supply
C) prices will rise; prices will return to their previous level
D) unemployment will rise; unemployment will return to its natural rate
Correct Answer:
Verified
Correct Answer:
Verified
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