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AE Model: Graphing Macroeconomic Equilibrium
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AE Model: Graphing Macroeconomic Equilibrium
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16. Deriving the Aggregate Expenditures Model / AE Model: Graphing Macroeconomic Equilibrium / Problem 3
Problem 3
If a country experiences a significant increase in exports, what is the likely impact on its macroeconomic equilibrium?
A
The aggregate expenditures line remains unchanged.
B
The aggregate expenditures line shifts upward, potentially increasing GDP at equilibrium.
C
The slope of the aggregate expenditures line decreases.
D
The aggregate expenditures line shifts downward, potentially decreasing GDP at equilibrium.
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