Multiple Choice Question

What will a decrease in US net exports do to aggregate demand?
Multiple choice question.

Shift the aggregate demand curve leftward

Shift the aggregate supply curve rightward

Shift the aggregate demand curve rightward

Shift the aggregate supply curve leftward

1 answer

A decrease in US net exports will reduce aggregate demand because net exports are a component of aggregate demand (AD = C + I + G + NX, where NX is net exports). Therefore, the correct answer is:

Shift the aggregate demand curve leftward