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What is the international trade effect quizlet?The international-trade effect refers to the effect that a change in the price level has on spending on exports and imports. An increase in the domestic price level makes U.S. exports more expensive and foreign imports less expensive, which decreases net exports.
How are price and output affected in the ad as model?If the AD curve shifts to the right, then the equilibrium quantity of output and the price level will rise. If the AD curve shifts to the left, then the equilibrium quantity of output and the price level will fall.
Which of the following will shift the aggregate demand curve to the right?Only a decrease in existing capital stock will result in a rightward shift of the aggregate demand curve. In other words, demand will rise when the firm lowers its company shareholder amount.
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Which of the statements offers the best explanation for the change demonstrated in the graph?
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