China is one of the worldʹs largest exporters. As the worldʹs economies slipped into a worldwide recession in 2008, there was a __________Chinaʹs aggregate demand curve as Chinaʹs exports___________

Question

Quizplus · Accepted Answer

A worldwide recession would lead to a decrease in demand for goods and services, resulting in a leftward shift of China's aggregate demand curve. This would cause a decrease in China's exports, as indicated in option B. A movement upward along the aggregate demand curve would imply an increase in exports, which is not consistent with the context provided. A rightward shift of the aggregate demand curve would imply an increase in both exports and domestic demand, which is not consistent with a worldwide recession.

China Is One of the Worldʹs Largest Exporters