The net exports adjustments in aggregate demand includes
A)capital inflows minus capital outflows.
B)capital outflows minus capital inflows.
C)the sum of exports minus imports.
D)the sum of imports minus exports.

Question

Quizplus · Accepted Answer

Net exports adjustments in aggregate demand refer to the difference between a country's exports and imports. This is calculated as exports minus imports, so the correct answer is (C). Choices (A) and (B) relate to the balance of payments and do not directly impact aggregate demand. Choice (D) has the correct order (imports minus exports) but is still incorrect in terms of how net exports are calculated.

The Net Exports Adjustments in Aggregate Demand Includes