Question

A reduction in U.S net exports would shift U.S. aggregate demand a. leftward. In an attempt to stabilize the economy, the government could increase expenditures. b. rightward. In an attempt to stabilize the economy, the government could increase expenditures. c. rightward. In an attempt to stabilize the economy, the government could decrease expenditures. d. leftward. In an attempt to stabilize the economy, the government could decrease expenditures.

Answer 1

A reduction in U.S net exports would shift U.S. aggregate demand goes d. leftward. In an attempt to stabilize the economy, the government could decrease expenditures.

Step-by-step explanation:

Decrease in net exports shifts the AD curve leftward and to stabilize the economy government should cut taxes.