Which of the following will occur when net exports in an economy increase?
A) The aggregate demand curve will shift to the left.
B) The aggregate supply curve will shift to the right.
C) The aggregate supply curve will shift to the left.
D) The aggregate demand curve will shift to the right.

Question

Quizplus · Accepted Answer

When net exports in an economy increase, it means that the country is exporting more than it is importing. This increase in exports contributes to higher aggregate demand, as exports are a component of aggregate demand. Therefore, the aggregate demand curve will shift to the right.

Which of the Following Will Occur When Net Exports in an Economy