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1. Exchange rates and aggregate supply and demand The following graph illustrates the aggregate demand and aggregate supply curves for the U.S. economy. Suppose that the U.S. dollar has recently depreciated relative to other foreign currencies. Shift the appropriate curve or curves on the graph to illustrate how the depreciation in the U.S. dollar affects the U.S. economy.
Aggregate Supply Aggregate Demand Aggregate Supply Aggregate Demand REAL GDP According to your answer to the graph question, the depreciation of the U.S. dollar leads to In the aggregate price level and in aggregate output in the United States
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