Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Unemployment decreases due to increased demand for domestic goods
B
Unemployment increases because more jobs are outsourced
C
Unemployment remains unchanged as exports do not affect local jobs
D
Unemployment increases due to a rise in import competition
Understanding the Answer
Let's break down why this is correct
Answer
When a country sees a big rise in net exports, it means that it is selling more goods and services to other countries than it is buying from them. This increase in demand for its products usually leads to more production in factories, which often requires hiring more workers. As more people get jobs, the unemployment rate tends to decrease because there are more opportunities for individuals to find work. For example, if a country that produces cars starts exporting them in large quantities, car manufacturers may need to hire additional workers to meet the growing demand. Overall, higher net exports can help boost the economy and lower unemployment.
Detailed Explanation
When a country sells more goods to other countries, it creates more jobs at home. Other options are incorrect because Some might think that selling more abroad means jobs are lost at home; It's a common mistake to think exports don't affect local jobs.
Key Concepts
Aggregate Demand
Unemployment
Net Exports
Topic
Aggregate Demand and Unemployment
Difficulty
medium level question
Cognitive Level
understand
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