Suppose the U.S.GDP growth rate is faster relative to other countries' GDP growth rates.U.S.imports will therefore increase faster than U.S.exports,and this will
A)move the economy up along a stationary aggregate demand curve.
B)move the economy down along a stationary aggregate demand curve.
C)shift the aggregate demand curve to the left.
D)shift the aggregate demand curve to the right.

Question

Quizplus · Accepted Answer

When U.S. GDP growth is faster than other countries, U.S. imports increase faster than exports, leading to a trade deficit, which reduces net exports and shifts the aggregate demand curve to the left.