if-a-country-experiences-a-significant-increase-in-exports-what-is-the-predicted

Question

If a country experiences a significant increase in exports, what is the predicted outcome in the AD-AS model?

Accepted Answer

Aggregate demand shifts to the right, leading to higher price levels and real GDP in the short run.

Answer

Short run aggregate supply shifts to the left, leading to higher price levels and lower real GDP.

Answer

Short run aggregate supply shifts to the right, leading to lower price levels and higher real GDP.

Answer

Aggregate demand shifts to the left, leading to lower price levels and real GDP in the short run.