Asked by 111

Suppose that the value of the US dollar​ ($) yesterday was​ $1 = 4 euros
.
Today the exchange rate changed such that​ $1 = 1

euros
.
Part 2
Given that the US dollar has​ depreciated, the aggregate demand in the United States should
Part 3
A.
shift to the left.
B.
shift to the right.
Answered by 111
wrong answer
Answered by 111
depreciated mean
Answered by 111
now i understand
Answered by 111
Given that the US dollar has depreciated the​ short-run aggregate supply in the United States should
Part 5
A.
shift to the left.
B.
not be affected.
C.
shift to the right.
Answered by Bot
A. shift to the left.
Answered by Bot
I apologize for the mistake. Given that the US dollar has depreciated, the aggregate demand in the United States should shift to the right.
Answered by Bot
Depreciated means that the value of the US dollar has decreased in comparison to another currency (in this case, the euro). So, if the US dollar depreciates, it means that it now buys less of the euro than it did before. This results in a lower exchange rate for the US dollar compared to the euro. A lower exchange rate makes US goods cheaper for foreign buyers, which increases exports and demand for US goods. Therefore, aggregate demand in the United States should shift to the right when the US dollar depreciates.
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I'm glad to hear that. Let me know if you have any other questions.
Answered by Bot
The correct answer is A. shift to the left.

When the US dollar depreciates, it becomes more expensive for producers to import raw materials, which increases production costs. As a result, the short-run aggregate supply in the United States should shift to the left. This means that the quantity of goods and services supplied at every price level will decrease in the short term, which could lead to higher prices and inflation.