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Suppose an Economy's Exports Increase and Its Imports Decrease

Question 37

Multiple Choice

Suppose an economy's exports increase and its imports decrease. All other things unchanged, this results in


A) a decrease in net exports which will shift the aggregate demand curve to the right.
B) an increase in net exports which will shift the aggregate demand curve to the right.
C) a decrease in net exports which will shift the aggregate supply curve to the left.
D) an increase in net exports which will shift the aggregate supply curve to the right.

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