Suppose the Canadian price level increases.What happens to the aggregate quantity of Canadian output demanded?
A) It decreases because Canadian products become cheaper relative to foreign products.
B) It decreases because Canadian products become more expensive relative to foreign products.
C) It increases because Canadian products become cheaper relative to foreign products.
D) It increases because Canadian products become more expensive relative to foreign products.

Question

Suppose the Canadian price level increases.What happens to the aggregate quantity of Canadian output demanded?  
A) It decreases because Canadian products become cheaper relative to foreign products. 
B) It decreases because Canadian products become more expensive relative to foreign products. 
C) It increases because Canadian products become cheaper relative to foreign products. 
D) It increases because Canadian products become more expensive relative to foreign products.

Quizplus · Accepted Answer

If the Canadian price level increases, Canadian products will become more expensive relative to foreign products. As a result, demand for Canadian products will decrease, leading to a decrease in the aggregate quantity of Canadian output demanded.

Suppose the Canadian Price Level Increases