Suppose the U. S. GDP growth rate is faster relative to other countries' GDP growth rates. U. S. imports will therefore increase faster than U. S. exports, and this will A. move the economy up along a stationary aggregate demand curve. B. shift the aggregate demand curve to the right. C. move the economy down along a stationary aggregate demand curve. D. shift the aggregate demand curve to the left.

Question

Kamila Braun

Business

2 September, 22:06

Suppose the U. S. GDP growth rate is faster relative to other countries' GDP growth rates. U. S. imports will therefore increase faster than U. S. exports, and this will A. move the economy up along a stationary aggregate demand curve. B. shift the aggregate demand curve to the right. C. move the economy down along a stationary aggregate demand curve. D. shift the aggregate demand curve to the left.

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Answers (1)

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Shane · Answer 1

Option (B) is correct.

Explanation:

If there is an any change in the GDP of a particular nation then as a result this will shift the demand curve. Increase in GDP or an increase in the income level of the people will shift the demand curve for goods rightwards. With the higher level of income, the consumer's demand for goods increases.

Any change in the price level of the goods will affect the quantity demanded for that goods and there is a movement along a demand curve.