PRC-3 · Chapter 13 · Question 38 of 50
Which of the following events would cause an economy's Aggregate Demand (AD) curve to definitively shift to the right?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) A significant increase in Net Exports (foreigners buying more domestic goods)
Explanation
Aggregate Demand equals C + I + G + (X-M). An increase in net exports directly increases one of the core components of AD, shifting the entire curve to the right.
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