If Europe has a large increase in income, what will happen in the United States?
A) The aggregate demand curve will shift to the right.
B) The aggregate demand curve will shift to the left.
C) The aggregate demand curve will not change.
D) The aggregate demand curve will shift to the left in the short run and then to the right in the long run.

Question

Quizplus · Accepted Answer

An increase in income in Europe can lead to increased demand for U.S. exports, shifting the U.S. aggregate demand curve to the right.

If Europe Has a Large Increase in Income, What Will