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