The AD curve will shift to the right if:
A)people become pessimistic about the future of the economy.
B)there is a decrease in foreign income.
C)the government decreases spending.
D)domestic price levels decrease.
E)foreign price levels increase.

Question

Quizplus · Accepted Answer

An increase in foreign price levels makes domestic goods relatively cheaper, increasing exports, which shifts the AD curve to the right.

The AD Curve Will Shift to the Right If