Asked by Dangerously Loved on May 26, 2024
Verified
A nation's aggregate expenditure decreases with an increase in imports,other things constant.
Aggregate Expenditure
The total amount spent on an economy’s goods and services, by households, businesses, the government, and foreign buyers.
Imports
Goods and services that are brought into a country from abroad for sale.
Decreases
A reduction or decline in value, amount, or level.
- Gain an understanding of what sets apart nominal GDP and real GDP, including their definitions.
Verified Answer
DL
Dazia LawrenceMay 31, 2024
Final Answer :
True
Explanation :
Imports are a component of a nation's aggregate expenditure, and an increase in imports means that more money is leaving the country to purchase goods and services from other countries. This decrease in domestic spending can lead to a decrease in aggregate expenditure.
Learning Objectives
- Gain an understanding of what sets apart nominal GDP and real GDP, including their definitions.