Ceteris paribus, a decrease in exports leads to a:
A)movement up and to the left along the same aggregate demand curve.
B)movement down and to the right along the same aggregate demand curve.
C)right shift of the aggregate demand curve.
D)left shift of the aggregate demand curve.

Question

Quizplus · Accepted Answer

A decrease in exports means that there is a reduction in the amount of goods and services being sold to other countries, resulting in a decrease in aggregate demand. This leads to a leftward shift of the aggregate demand curve.

Ceteris Paribus, a Decrease in Exports Leads to A