Economy, asked by bynalikitha2755, 1 year ago

other things being equal, a decrease in an economy's exports will

Answers

Answered by myrakincsem
1
Thank you for asking this question ,let me help you in finding the answer

The answer of your question is "decrease its domestic aggregate expenditures  "
When other things are equal, a decrease in an economy exports will decrease the domestic aggregate expenditure. Which will ultimately result in 
 decrease its equilibrium GDP.This is because the overall domestic expenditure is decreasing as we know that variation in domestic expenditure directly effects the equilibrium GDP.

Hope this helps.
Answered by writersparadise
2
The correct answer is - It will decrease the domestic aggregate expenditures and also, the equilibrium level of output.

The potential output will be decreased when the workers choose shorter work schedules in order 
to enjoy more leisure time.

Contrary to it, when the 
other things are being equal, and there is an increase in economy exports, it will increase its domestic aggregate expenditures and therefore increase its equilibrium GDP.
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