Positive net exports increase aggregate expenditures beyond what they would be in a closed economy and thus have an expansionary effect on domestic GDP.

Question

Quizplus · Accepted Answer

Positive net exports mean that a country is exporting more than it is importing, which increases aggregate expenditures and contributes to a higher GDP, as it adds to the total demand for a country's goods and services.

Positive Net Exports Increase Aggregate Expenditures Beyond What They Would