The relationship between net exports and GDP makes the slope of the aggregate expenditure curve
A)steeper at low levels of GDP and flatter at high levels of GDP.
B)flatter than it would be otherwise.
C)neither flatter nor steeper than it would be otherwise.
D)steeper than it would be otherwise.

Question

Quizplus · Accepted Answer

Net exports are a component of aggregate expenditure, and when they are negative or decrease, they reduce the slope of the aggregate expenditure curve, making it flatter than it would be otherwise.

The Relationship Between Net Exports and GDP Makes the Slope