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Figure: Shifts of the AD-AS Curves
-(Figure: Shifts of the AD-AS Curves) Refer to Figure: Shifts of the AD-AS Curves. A short run increase in net exports is illustrated by panel:
A) (a).
B) (b).
C) (c).
D) (d).

Question

Use the following to answer questions:
Figure: Shifts of the AD-AS Curves 
-(Figure: Shifts of the AD-AS Curves) Refer to Figure: Shifts of the AD-AS Curves. A short run increase in net exports is illustrated by panel:
A) (a). 
B) (b). 
C) (c). 
D) (d).

Quizplus · Accepted Answer

Panel (a) shows an increase in net exports, which shifts the AD curve to the right. This leads to an increase in both output and price level in the short run, as shown by the movement from point A to point B.

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