For a given level of inflation, if there is a greater willingness by foreigners to purchase domestic goods, then the ________ shifts ________.
A)aggregate demand curve; right
B)short-run aggregate supply line; downward
C)aggregate demand curve; left
D)short-run aggregate supply line; upward

Question

Quizplus · Accepted Answer

An increase in exports that is independent of the general price level (inflation)will increase aggregate expenditure at any inflation rate, thereby shifting the AD curve to the right.

For a Given Level of Inflation, If There Is a Greater