The foreign purchases effect:
a) shifts the aggregate demand curve rightward.
b) shifts the aggregate demand curve leftward.
c) shifts the aggregate supply curve rightward.
d) moves the economy along a fixed aggregate demand curve.

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a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.

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