A decrease in U.S.exports to Japan can be represented by
A)The aggregate expenditure curve shifting upward.
B)The aggregate expenditure curve shifting downward.
C)A rightward movement along the aggregate expenditure curve.
D)A leftward movement along the aggregate expenditure curve.

Question

Quizplus · Accepted Answer

A decrease in U.S. exports to Japan would lead to a decrease in aggregate expenditure in the U.S. economy, represented by the aggregate expenditure curve shifting downward. This is because exports are a component of aggregate expenditure, and a decrease in exports would reduce the total spending on U.S. goods and services.

A Decrease in U