Figure 15-1

-Refer to Figure 15-1.Ceteris paribus,a decrease in the growth rate of domestic GDP relative to the growth rate of foreign GDP would result in U.S.exports increasing faster than U.S.imports.This would be represented by a movement from
A) AD₁ to AD₂.
B) AD₂ to AD₁.
C) point A to point B.
D) point B to point A.

Question

Figure 15-1
 
-Refer to Figure 15-1.Ceteris paribus,a decrease in the growth rate of domestic GDP relative to the growth rate of foreign GDP would result in U.S.exports increasing faster than U.S.imports.This would be represented by a movement from
A) AD₁ to AD₂. 
B) AD₂ to AD₁. 
C) point A to point B. 
D) point B to point A.

Quizplus · Accepted Answer

A decrease in the growth rate of domestic GDP relative to foreign GDP would likely increase U.S. exports as foreign demand for U.S. goods rises, shifting the aggregate demand curve from AD₁ to AD₂.

Figure 15-1 -Refer to Figure 15-1.Ceteris Paribus,a Decrease in the Growth Rate