A lower U.S. net exports caused by a higher U.S. price level will cause:
A) a movement downward along the AD curve.
B) a leftward shift in the AD curve.
C) a rightward shift in the AD curve.
D) a movement upward along the AD curve.

Question

Quizplus · Accepted Answer

A higher U.S. price level makes U.S. goods more expensive for foreign buyers, reducing net exports and causing a movement upward along the AD curve as the quantity of real GDP demanded decreases.

A Lower US