Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
True
B
False
Understanding the Answer
Let's break down why this is correct
Answer
Net exports refer to the value of a country's exports minus its imports. When net exports increase, it means that a country is selling more goods to other countries than it is buying from them. This can lead to more production in local factories, which often means hiring more workers, thus reducing cyclical unemployment. However, it's important to remember that other factors, like overall economic conditions or government policies, can also influence unemployment rates. For example, if a country experiences high demand for its exports during an economic boom, more jobs will likely be created, but if there is a recession, even increased net exports may not reduce unemployment significantly.
Detailed Explanation
It's not always true that more exports will lower unemployment. Other options are incorrect because Some people think that more exports will always mean more jobs.
Key Concepts
Aggregate Demand
Unemployment
Topic
Aggregate Demand and Unemployment
Difficulty
easy level question
Cognitive Level
understand
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