If Exports Increase, Then the Aggregate Expenditure Curve Shifts ________

question 47

Multiple Choice

If exports increase, then the aggregate expenditure curve shifts ________ and equilibrium expenditure ________.

• A) upward; decreases
• B) upward; increases
• C) downward; decreases
• D) downward; increases
• E) upward; does not change

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Definitions:

Owner's Capital

The amount of equity a business owner has invested in the business minus any withdrawals made from the business by the owner.

Cash Balance

The amount of cash a company has available, reflecting the total amount of cash and cash equivalents at a given point in time.

General Ledger

A full catalog of all economic activities a company has engaged in from its inception, systematically arranged by accounts.

Cash Account

An account that records all cash transactions, including receipts and payments, reflecting the company's liquidity status.