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Refer to the Diagram Below

Question 185

Multiple Choice

Refer to the diagram below. The change in aggregate expenditures as shown from (C + Ig + Xn2) to (C + Ig + Xn1) might be caused by: Refer to the diagram below. The change in aggregate expenditures as shown from (C + I<sub>g</sub> + X<sub>n2</sub>) to (C + I<sub>g</sub> + X<sub>n1</sub>) might be caused by: A) an appreciation of this nation's currency relative to the currencies of its trading partners. B) a depreciation of this nation's currency relative to the currencies of its trading partners. C) a decrease in this nation's price level relative to price levels abroad. D) a rightward shift in this nation's aggregate supply curve.


A) an appreciation of this nation's currency relative to the currencies of its trading partners.
B) a depreciation of this nation's currency relative to the currencies of its trading partners.
C) a decrease in this nation's price level relative to price levels abroad.
D) a rightward shift in this nation's aggregate supply curve.

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