Elucidate a rightward shift of aggregate demand curve

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Q. A fall in value of dollar against or currencies makes U.S. final goods and services cheaper to foreigners even though U.S. aggregate price level stays same. As a result, foreigners demand more American aggregate output. Your study partner says that this represents a movement down aggregate demand curve because foreigners are demanding more in response to a lower price. You, however, insist that this represents a rightward shift of aggregate demand curve. Who is right? Explain.

Reference no: EM1369553

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