Suppose the U.S.GDP growth rate is slower relative to other countries' GDP growth rates.This will
A)move the economy up along a stationary aggregate demand curve.
B)move the economy down along a stationary aggregate demand curve.
C)shift the aggregate demand curve to the left.
D)shift the aggregate demand curve to the right.

Question

Quizplus · Accepted Answer

A slower U.S. GDP growth rate relative to other countries can lead to increased net exports as U.S. goods become relatively cheaper, thus increasing aggregate demand and shifting the aggregate demand curve to the right.