If exports decrease from positive values to zero, the aggregate expenditure schedule would:

Question

Quizplus · Accepted Answer

When exports decrease from positive values to zero, it means that the country is selling less abroad, which directly reduces the total demand for its goods and services. This reduction in demand leads to a downward shift in the aggregate expenditure schedule, as the country's total income and expenditure are expected to decrease due to the fall in exports.

If Exports Decrease from Positive Values to Zero, the Aggregate