What Would Be the Impact on Aggregate Demand (AD)if Both

question 78

Multiple Choice

What would be the impact on aggregate demand (AD) if both imports and exports rose?

• A)AD would rise if exports rose more than imports.
• B)AD would decrease.
• C)AD would increase.
• D)AD would be unaffected.

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Definitions:

Losses

Situations where expenses exceed revenues, resulting in negative income.

Economic Profit

The variance between cumulative revenue and aggregate outlays, covering both manifest and concealed costs.

Competitive Market

A competitive market is one in which a large number of buyers and sellers interact, leading to goods and services being offered at market-determined prices with minimal barriers to entry or exit.

Market Price

The current value at which a good or service can be bought or sold in a market.