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This Question: 5 pts 3 of 20 (15 complete) This Quiz: 100 pts possible Question Help Read the news clip, then answer the following question Exports and Imports Increase Real exports of goods and services increased 6.0 percent in the second quarter compared with an increase of 4.4 percent in the first. Real imports of goods and services increased 2.9 percent, compared with an increase of 3.1 percent. The changes in exports and imports reported here 0 A, increase aggregate demand and have no effect on the quantity of real GDP demanded Source: Bureau of Economic Analysis, August 29, 2012 O B. increase the quantity of real GDP demanded ° C. decrease aggregate demand OD. do not influence aggregate demand Of the two quarters reported, exports and imports make the greater contribution to aggregate demand growth in the quarter.

Explanation / Answer

The changes in exports and imports reported here
Option b. With the decrease in imports and increase in exports the net trade increase causing to increase in aggregate demand

Of the two quarters reported, aggregate demand growth is more in 2nd quarter

Option c.

With the increase in quantity of money people would get easy access to money which they would use in business activities which generated jobs and shifts aggregate demand to right.

1st Quarter 2nd Quarter Exports 4.4 6 Imports 3.1 2.9 Net exports 1.3 3.1

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