A fall in the price level that causes a change in net exports results in:
A) a downward movement along the aggregate demand curve.
B) an upward movement along the aggregate demand curve.
C) a rightward shift of the demand curve.
D) a leftward shift of the demand curve.
E) no change in the quantity of aggregate demand.

Question

Quizplus · Accepted Answer

A fall in the price level increases net exports, leading to a higher quantity of aggregate demand, which is represented by a downward movement along the aggregate demand curve.

A Fall in the Price Level That Causes a Change