Assuming other factors being constant, a rise in exports results in a fall in aggregate demand.

Question

BlackTom AI · Accepted Answer

Consider the statement about exports and aggregate demand. 
Option 1: True. This would claim that a rise in exports causes aggregate demand to fall. In standard macroeconomic models, exports are a component of aggregate demand (AD = C + I + G + NX, where NX includes exports minus imports). A rise in exports increases NX, and thus increases AD, holding other factors constant. Therefore, this option misstates the relationship between exports and AD. 
Option 2: False. This aligns with the correct link: higher exports raise aggregate demand because foreign spending on domestically produced goods and services adds to the total demand in the economy, assuming other factors remain unchanged. The misconception in the original statement is the direction of the effect; many students confuse exports with leakage, but exports are actually an expenditure on domestic output, not a withdrawal from demand. 
In summary, exports contribute positively to aggregate demand, so the claim that a rise in exports leads to a fall in AD is incorrect.

BECO011 2025 Sample Final Exam for Practice

Assuming other factors being constant, a rise in exports results in a fall in aggregate demand.

查看解析

登录即可查看完整答案

类似问题

Assuming other factors being constant, a fall in imports results in a fall in aggregate demand.

In the long-run persistent increases in aggregate demand will:

The downward slope of the aggregate-demand curve shows that:

In the short run, a decrease in personal income taxes will result in _________________.

Suppose 𝑎 ¯ 𝑐 = 0.75 , 𝑎 ¯ 𝑖 = 0.18 , 𝑎 ¯ 𝑔 = 0.18 , 𝑎 ¯ 𝑒 𝑥 = 0.13 , and 𝑎 ¯ 𝑖 𝑚 = 0.17 . Aggregate demand is 𝑎 ¯ = ______.

Suppose the economy is initially in long-run equilibrium. A decrease in aggregate demand will

Using the aggregate demand-aggregate supply model, predict what happens in the short run when the consumer confidence index falls as consumers become pessimistic about their economic prospects.

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单