Answer to Question #214113 in Economics for Paballo

Question

Introducing the positive net exports to the Keynesian model …

[1] means that graphically X - Z is added to C + I + G, and the A curve shifts upward.

[2] means that graphically X - Z is added to C + I + G, and the A curve shifts downward.

[3] has no impact on the model with C and I.

[4] means that the multiplier increases.

Answer 1

[1] means that graphically X - Z is added to C + I + G, and the A curve shifts upward.