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Consider a Simple Macro Model with Demand-Determined Output

Question 2

Multiple Choice

Consider a simple macro model with demand-determined output.An exogenous increase in the domestic price level will


A) shift both the net export function and the AE curve upward.
B) shift the net export function upward and the AE curve downward.
C) shift both the net export function and the AE curve downward.
D) shift the net export function downward and the AE curve upward.
E) pivot the net export function and the AE curve upward.

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