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AP® Macroeconomics

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Example of the Net Exports Effect

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Ceteris paribus, which of the following best illustrates the net exports effect?

A

The price level in Canada increases, so Canada's aggregate supply increases.

B

The price level in Canada decreases, so Canada's real GDP increases.

C

The price level in Canada increases, so England's net exports increase.

D

The price level in Canada is affected by its citizen's demand for imports.

E

The price level in Canada decreases, so Canada's real GDP decreases.