Increased levels of spending on imports ?
Correct answer: D. shift aggregate demand to the left
- A. shift aggregate supply to the right
- B. shift aggregate supply to the left
- C. shift aggregate demand to the right
- D. shift aggregate demand to the left
Explanation
Imports are a leakage from aggregate expenditure, so higher import spending reduces net exports and shifts aggregate demand to the left. Aggregate supply is not directly shifted by this change in spending.
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