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.

---

Definitions:

Business Expansion

The process of increasing the size, output, or scope of a company's operations, typically requiring additional resources and strategies.

Partnership Liquidation

The process of closing a partnership by selling off assets, paying liabilities, and distributing the remaining assets to partners.

Capital Balances

The amount of funds contributed by owners or shareholders, plus retained earnings or net income, less any dividends paid out.

Capital Deficiency

A financial situation where a company's liabilities exceed its assets, indicating potential difficulties in covering its debts.