If Net Exports Are Reduced, the Expenditure Schedule Will Shift

question 63

Multiple Choice

If net exports are reduced, the expenditure schedule will shift

• A)downward and equilibrium real GDP will rise.
• B)upward and equilibrium real GDP will rise.
• C)downward and equilibrium real GDP will fall.
• D)upward and equilibrium real GDP will fall.

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Definitions:

Maintenance Costs

Expenses incurred in keeping an asset in working condition or restoring it to working condition.

Factory Machine Usage

The extent to which manufacturing equipment is utilized during the production process, often impacting efficiency and costs.

Variable Costs

Expenditures that change in direct correlation with production levels or sales figures.

Rent

Rent is the payment made by a tenant to a landlord for the use of a property, equipment, or other assets for a specified period.