Brexit expected to rattle U.S. economy The United Kingdom vote to leave the European Union (known as
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“Brexit” expected to rattle U.S. economy The United Kingdom vote to leave the European Union (known as Brexit) is expected to affect the U.S. economy by driving up the value of the dollar.
Explain the effect of a high value of the U.S. dollar on U.S. real GDP and the price level. Use an AS-AD graph to illustrate your answer.
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FIGURE 29.3 Chapter Checkpoint Study Plan Problem II Price level (GDP price index) 104 103 102 101 100 AD₁ ADO AS 0 20.1 20.2 20.3 20.4 20.5 20.6 20.7 20.8 20.9 Real GDP (trillions of 2012 dollars)
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