Problem
1. How does a lower price level in the United States affect the purchases of imported goods? Explain, using aggregate demand.
2. Describe whether the following changes cause aggregate demand to increase, decrease, or neither.
a. The price level increases.
b. Investment decreases.
c. Imports decrease and exports increase.
d. The price level decreases.
e. Consumption increases.
f. Government purchases decrease.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.