If Exports and Imports Both Fell, but Exports Fell Less

question 173

Multiple Choice

If exports and imports both fell, but exports fell less than imports,

• A)​AD would decrease.
• B)​AD would increase.
• C)​AD would be unaffected.
• D)​AD could either increase or decrease.

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Definitions:

General Electric

A multinational conglomerate corporation operating in sectors like aviation, power, healthcare, and renewables, among others.

Plant Size

The scale or capacity of a factory or production facility, often measured in terms of productive capability or physical dimensions.

Diseconomies of Scale

An economic concept where increasing production results in higher per unit costs.

Long-run Average Total Cost

The average cost per unit of output over the long term, where all inputs are considered variable, allowing firms to adjust all factors of production.