All other things unchanged, an increase in exports relative to imports will
A) cause a movement upward along a given aggregate demand curve.
B) cause a movement downward along a given aggregate demand curve.
C) shift the aggregate demand curve to the right.
D) shift the aggregate demand curve to the left.

Question

Quizplus · Accepted Answer

An increase in exports relative to imports will lead to an increase in net exports, which increases aggregate demand. This will shift the aggregate demand curve to the right.

All Other Things Unchanged, an Increase in Exports Relative to Imports