For a given level of inflation, if there is a greater willingness by foreigners to purchase domestic goods, then the _____ shifts _____.
A)aggregate demand curve; right
B)aggregate demand curve; left
C)short-run aggregate supply line; upward
D)short-run aggregate supply line; downward

Question

Quizplus · Accepted Answer

An increase in foreign willingness to purchase domestic goods would result in an increase in exports, which would shift the aggregate demand curve to the right. This is because an increase in exports would increase the demand for domestic goods, increasing aggregate demand.

For a Given Level of Inflation, If There Is a Greater