According to the Net-Exports Effect, as the Price Level Falls

question 6

Multiple Choice

According to the net-exports effect, as the price level falls relative to the rest of the world:

• A) foreigners buy fewer goods.
• B) foreigners buy more Australian goods.
• C) the aggregate demand curve shifts to the left.
• D) the aggregate demand curve shifts to the right.

---

Definitions:

Tacos

A traditional Mexican dish consisting of a corn or wheat tortilla folded or rolled around a filling.

Budget Line

A visual depiction showcasing all the potential pairings of two items that can be bought within a specific budget at fixed prices.

Consumption Bundles

Consumption bundles refer to a specific combination of goods and services that a consumer chooses based on their preferences and budget constraints.

Income

The financial gain received by an individual or household from various sources like work, investments, or benefits, over a period.