Which of the following would happen to Canadian net exports and aggregate demand if countries that imported from Canada went into recession?
A)Net exports would rise, and aggregate demand would shift right.
B)Net exports would rise, and aggregate demand would shift left.
C)Net exports would fall, and aggregate demand would shift right.
D)Net exports would fall, and aggregate demand would shift left.

Question

Quizplus · Accepted Answer

If countries that imported from Canada went into recession, their demand for Canadian exports would decrease. This would lead to a decrease in Canadian net exports, which would shift the aggregate demand curve leftward. Therefore, net exports would fall and aggregate demand would shift left.

Which of the Following Would Happen to Canadian Net Exports