Problem
Increasing Exports and Aggregate Demand. Suppose foreign countries grow more rapidly than anticipated and U.S. exports also grow.
a. Using the income-expenditure model, first show how the increase in exports will increase U.S. GDP.
b. Using your results in part (a), explain how the aggregate demand curve shifts with the increase in exports.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.