Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Shift the aggregate demand curve to the right to indicate increased demand for exports.
B
Shift the aggregate supply curve to the left to indicate increased production costs.
C
Plot a new equilibrium point higher than the previous one to show economic growth.
D
Indicate a leftward shift in the aggregate demand curve to represent a decrease in consumer spending.
E
Show an increase in income levels leading to higher consumption patterns in your country.
Understanding the Answer
Let's break down why this is correct
Answer
When a trading partner recovers economically, it means they are buying more goods and services from your country. This increase in demand shifts the demand curve to the right on a demand and supply graph, showing that people want more of what your country produces. For example, if your country sells cars and its trading partner starts buying more cars, the demand for cars increases. This can lead to higher prices and more production in your country, as businesses respond to the increased demand. So, on the graph, you would illustrate this change by shifting the demand curve to the right, indicating growth in your economy due to the trading partner's recovery.
Detailed Explanation
Other options are incorrect because This option suggests that demand for exports increases; This option implies that production costs rise.
Key Concepts
Aggregate Demand and Supply
Economic Interdependence
Graphical Analysis
Topic
Graphing Economic Impacts
Difficulty
easy level question
Cognitive Level
understand
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.