If there is a decrease in foreign demand for U.S.goods due to a recession in Europe
A) the U.S. aggregate demand curve will shift right.
B) the U.S. aggregate demand curve will shift left.
C) the U.S. aggregate demand curve will not be affected.
D) the U.S. aggregate demand curve will become steeper.

Question

Quizplus · Accepted Answer

Foreign demand is a component of the aggregate demand curve, so a decrease in demand from Europe will shift the U.S. aggregate demand curve to the left.

If There Is a Decrease in Foreign Demand for U