An increase in net exports shifts the aggregate demand function up.

Question

Quizplus · Accepted Answer

An increase in net exports means that a country is exporting more than it is importing, which leads to an increase in overall demand for that country's goods and services. This increase in demand shifts the aggregate demand curve to the right (or up in the context of a graphical representation where the vertical axis represents the price level and the horizontal axis represents real GDP).

An Increase in Net Exports Shifts the Aggregate Demand Function