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  • Sources of Aggregate Demand Shocks

Effect of Exports on the Aggregate Demand Curve

A change in the level of exports (XX) leads to a parallel shift in the aggregate demand curve. An increase in exports shifts the curve upward, as it represents a rise in autonomous spending on domestically produced goods, thus increasing aggregate demand at all income levels.

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Introduction to Macroeconomics Course

Ch.3 Aggregate demand and the multiplier model - The Economy 2.0 Macroeconomics @ CORE Econ

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Learn After
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