A weak dollar will increase net exports and shift the AD curve to the right.
When the value of the dollar falls relative to the currency of other nations, Americans will find foreign goods more expensive. As a result, U.S. imports will decrease. On the other hand, it is now cheaper for foreign countries to buy U.S.-made goods, therefore, U.S. exports will increase. These two factors combine to increase net exports and therefore aggregate demand, shifting the AD curve to the right.
The aggregate demand curve represents the total quantity of all goods (and services) demanded by the economy at different price levels.
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