Other things equal, if the national incomes of the major trading partners of the United States were to rise, the U.S.

Question

Multiple Choice
aggregate demand curve would shift to the right.
aggregate supply curve would shift to the left.
aggregate supply curve would shift to the right.
aggregate demand curve would shift to the left.

Answer 1

If the national incomes of the major trading partners of the United States were to rise, this would likely lead to an increase in demand for U.S. exports. As a result, the aggregate demand curve in the U.S. would shift to the right due to the higher demand for goods and services produced in the U.S.

So, the correct answer is:

aggregate demand curve would shift to the right.