Multiple Choice Question

What will a rise in net exports do?
Multiple choice question.

Shift the aggregate demand curve to the right

Shift the aggregate supply curve to the left

Shift the aggregate demand curve to the left

Shift the aggregate supply curve to the right

1 answer

A rise in net exports will:

Shift the aggregate demand curve to the right.

This is because an increase in net exports indicates that a country is selling more goods and services to other countries than it is buying, which increases overall demand for domestic goods and services.