Consider the Net Export Function and the AE Curve in a Simple

question 109

Multiple Choice

Consider the net export function and the AE curve in a simple macro model with demand-determined output.What is the effect of an exogenous increase in the domestic price level?

• A)The net export function and the AE curve both shift upward.
• B)The net export function shifts upward and the AE curve shifts downward.
• C)The net export function and the AE curve both shift downward.
• D)The net export function shifts downward and the AE curve shifts upward.
• E)The net export function rotates upward and the AE curve shifts upward.

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Definitions:

Current Liabilities

Financial obligations or debts a company is expected to settle within one fiscal year or its operating cycle, whichever is longer.

Paid Within One Year

Refers to obligations or debts that are due to be paid off within a twelve-month period.

Net Property

The total value of a company’s property, plant, and equipment assets after deducting accumulated depreciation and impairment losses.

Plant And Equipment

Long-term physical assets used in the operation of a business, such as machinery, buildings, and vehicles.