Other Things Being Equal, How Will a Decrease in an Economy's

question 54

Multiple Choice

Other things being equal, how will a decrease in an economy's exports affect aggregate expenditures and output?  

• A) Domestic aggregate expenditures will increase, and the equilibrium level of output will increase. 
• B) Domestic aggregate expenditures will decrease, and the equilibrium level of output will increase. 
• C) Domestic aggregate expenditures will remain the same, and the equilibrium level of output will remain the same. 
• D) Aggregate expenditures will be negative, and equilibrium level of output will decline.

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