Consider the net export function and the AE curve in a simple macro model with demand-determined output.What is the effect of an exogenous increase in the domestic price level?
A)The net export function and the AE curve both shift upward.
B)The net export function shifts upward and the AE curve shifts downward.
C)The net export function and the AE curve both shift downward.
D)The net export function shifts downward and the AE curve shifts upward.
E)The net export function rotates upward and the AE curve shifts upward.

Question

Quizplus · Accepted Answer

The Answer is C

Consider the Net Export Function and the AE Curve in a Simple