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if net exports are positive, group of answer choices the equilibrium gdp must be greater than the full-employment gdp. imports must exceed exports. aggregate expenditures are greater at each level of gdp than when net exports are zero or negative. some other component of aggregate expenditures must be negative.

Respuesta :

Aggregate spending is higher at each GDP level when net exports are positive than when they are zero or negative.

What impact do net exports have on GDP at equilibrium?

Shows the effect of net exports on equilibrium GDP. Positive net exports have an expansionary effect by driving up total spending above what it would be in a closed economy.

What connection exists between the GDP at equilibrium and the GDP at full employment?

GDP in equilibrium is to the right of GDP in full employment. When there is an inflationary gap, equilibrium GDP is higher than full employment GDP. GDP at equilibrium is too high. Raising taxes or cutting G expenditure are the only ways to close the deficit; both actions will lower GDP and cut spending.

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