Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
A→B→C→D
B
B→A→D→C
C
C→D→A→B
D
D→C→B→A
Understanding the Answer
Let's break down why this is correct
Answer
Increased net exports occur when a country sells more goods and services to other countries than it buys from them. This situation leads to higher aggregate demand, which means that the overall demand for goods and services in the economy increases. As a result of this higher demand, businesses begin to produce more to meet the needs of consumers. To produce more, companies need to hire additional workers, which means they require more labor. When more people are employed, it helps to reduce cyclical unemployment, as more individuals find jobs due to the increased economic activity.
Detailed Explanation
When net exports go up, it means we sell more goods to other countries. Other options are incorrect because This option suggests that higher demand comes after production; This option starts with hiring more workers, but that happens after demand increases.
Key Concepts
Aggregate Demand
Cyclical Unemployment
Net Exports
Topic
Aggregate Demand and Unemployment
Difficulty
medium level question
Cognitive Level
understand
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