An autonomous increase in net exports for any given inflation rate ________.
A)would add directly to planned expenditures
B)would raise the equilibrium level of output
C)causes the aggregate demand curve to shift to the right
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

An autonomous increase in net exports would add directly to planned expenditures, which would raise the equilibrium level of output. As a result, the aggregate demand curve would shift to the right. Therefore, all of the above options are correct.

An Autonomous Increase in Net Exports for Any Given Inflation