Aggregate demand shifts right if
A)net exports rise or the money supply rises.
B)net exports rise or the price level rises.
C)net exports fall or the money supply rises.
D)net exports fall or the price level rises.

Question

Quizplus · Accepted Answer

An increase in net exports or the money supply increases spending in the economy, causing aggregate demand to shift rightward. A decrease in net exports or an increase in the price level decreases spending, causing aggregate demand to shift leftward. Therefore, choices B and D are incorrect, and choice C contradicts the correct answer.

Aggregate Demand Shifts Right If