Figure 24-1 -Refer to Figure 24-1. Ceteris paribus, an increase in the growth rate of domestic GDP relative to the growth rate of foreign GDP would be represented by a movement from A) AD₁ to AD₂. B) AD₂ to AD₁. C) point A to point B. D) point B to point A.

Question

Quizplus · Accepted Answer

An increase in the growth rate of domestic GDP relative to foreign GDP would likely decrease net exports, shifting the aggregate demand curve from AD2 to AD1.

Figure 24-1 -Refer to Figure 24-1. Ceteris Paribus, an Increase in the Increase