Answer to Question #332114 in Macroeconomics for Zukhanye September

Question

In the full Keynesian model,a decrease in exports would result in what?

Answer 1

When exports decrease and imports increase, net exports (exports ‐ imports) decrease. Because net exports are a component of real GDP, the demand for real GDP declines as net exports decline. Changes in aggregate demand. Changes in aggregate demand are represented by shifts of the aggregate demand curve.