An Increase in Net Exports, All Other Things Unchanged

question 119

Multiple Choice

An increase in net exports, all other things unchanged

• A) results in a movement downward along the aggregate demand curve.
• B) increases aggregate demand.
• C) increases aggregate supply.
• D) does not change aggregate demand or aggregate supply in the domestic economy.

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Definitions:

Pollution Reduction

Efforts or strategies aimed at decreasing the amount of pollutants released into the environment.

Government Caps

Limits set by the government on the amount of a commodity or service that can be produced, sold, or used.

Pollution Permits

Licenses issued by governments that allow the holder to emit a certain amount of pollutants over a given time period.

Property Rights

Legal rights to use, control, and derive benefits from a resource or property, including the right to exclude others.