What would be the impact on aggregate demand (AD)if exports and imports both rose,but exports rose less than imports?
A)AD would decrease.
B)AD would increase.
C)AD could either increase or decrease.
D)AD would be unaffected.

Question

Quizplus · Accepted Answer

If exports increase less than imports, the net exports (exports minus imports) would decrease, leading to a decrease in aggregate demand.

What Would Be the Impact on Aggregate Demand (AD)if Exports