Consider a Simple Macro Model with Demand-Determined Output

question 53

Multiple Choice

Consider a simple macro model with demand-determined output.An exogenous increase in the domestic price level will

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