An increase in the price level in the economies of U.S.trading partners will cause the aggregate expenditures function in the United States to
A)shift up.
B)shift down.
C)get flatter.
D)get steeper.

Question

Quizplus · Accepted Answer

An increase in the price level in the economies of U.S. trading partners makes U.S. goods relatively cheaper, leading to an increase in U.S. exports. This increase in exports will raise the aggregate expenditures in the United States, causing the aggregate expenditures function to shift up.

An Increase in the Price Level in the Economies of U.S.trading