Figure 13-1 -Refer to Figure 13-1.Ceteris paribus,a decrease in the growth rate of domestic GDP relative to the growth rate of foreign GDP 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

Quizplus · Accepted Answer

A decrease in the growth rate of domestic GDP relative to foreign GDP would increase net exports, shifting the aggregate demand curve to the right from AD₁ to AD₂.

Figure 13-1 -Refer to Figure 13-1.Ceteris Paribus,a Decrease in the Growth Rate