What Is the Impact of Net Exports on the Aggregate

question 15

Multiple Choice

What is the impact of net exports on the aggregate expenditure line?

• A)They cause the line to shift upward in a parallel fashion.
• B)They cause the line to shift downward in a parallel fashion.
• C)They make the line steeper.
• D)They make the line flatter.
• E)They make the slope of the line equal 1.

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Definitions:

Cost of Goods Sold

Costs directly resulting from the production process of goods that a company sells, encompassing expenditure on labor and materials.

Operating Income

Income earned from a firm's core business operations, excluding deductions of interest and taxes.

Operating Expenses

The costs associated with the day-to-day operations of a business, excluding the costs of goods sold.

Rent Revenue

Income earned from leasing out properties or spaces to tenants.