An increase in net exports, all other things unchanged
A) results in a movement downward along the aggregate demand curve.
B) increases aggregate demand.
C) increases aggregate supply.
D) does not change aggregate demand or aggregate supply in the domestic economy.

Question

Quizplus · Accepted Answer

An increase in net exports would mean that more goods and services are being exported, which would increase the demand for those goods and services domestically. This would shift the aggregate demand curve to the right, increasing aggregate demand.

An Increase in Net Exports, All Other Things Unchanged