The quantity of Australian exports is determined by
A)political factors.
B)Australian aggregate expenditure.
C)Australian consumption expenditure.
D)Australian real GDP.
E)aggregate incomes in the rest of the world.

Question

Quizplus · Accepted Answer

The quantity of Australian exports is largely determined by the aggregate incomes in the rest of the world. When other countries have higher income levels, they tend to demand more Australian goods and services, thus increasing exports. Political factors, Australian aggregate expenditure, consumption expenditure and real GDP may also play a role, but they are not the primary determinants of the quantity of Australian exports.

The Quantity of Australian Exports Is Determined by