Question

What is the effect long aggregate expenditure if the value of exports exceeds the value of imports in a country

Answer 1

Answer:

increases

Explanation:

The importing and exporting activity of a country can influence a country's GDP, its exchange rate, and its level of inflation and interest rates. In this equation, exports minus imports (X – M) equals net exports. When exports exceed imports, the net exports figure is positive

Answer 2

Answer: It increases

Explanation:

Aggregate expenditure is the total amount that is spent on goods and services in an economy within a period such as a year.

It is calculated by the formula:

= Consumption + Investment + Government expenditure + Net Exports

Net exports is calculated by deducting imports from exports.

If exports are more than imports in a country therefore, Net exports will be positive and will add to the formula above thereby increasing aggregate expenditure.