If aggregate demand shifts dominate aggregate supply shifts following a currency depreciation, then: O the price level will rise and RGDP will fall O the price level and real GDP will rise O the price level will fall and RGDP will rise price level will rise, but change in RGDP cannot be predicted

If aggregate demand shifts dominate aggregate supply shifts following a currency depreciation, then: O the price level will rise and RGDP will fall O the price level and real GDP will rise O the price level will fall and RGDP will rise price level will rise, but change in RGDP cannot be predicted

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter23: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 7QR

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Question

If aggregate demand shifts dominate aggregate supply shifts following a currency depreciation, then:
O the price level will rise and RGDP will fall
O the price level and real GDP will rise
O the price level will fall and RGDP will rise
O price level will rise, but change in RGDP cannot be predicted

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