China is one of the world's largest exporters. As the world's economies slipped into a worldwide recession in 2008, there was a ________ China's aggregate demand curve as China's exports ________.

Question

Quizplus · Accepted Answer

When a country's exports decrease, it means that foreign demand for its goods has fallen. This leads to a decrease in the country's aggregate demand, represented by a leftward shift of the aggregate demand curve, not just a movement along the curve.

China Is One of the World's Largest Exporters