Higher exports : Increased aggregate demand :: Declining real wages : ?

Higher exports lead to increased aggregate demand because when a country sells more goods to other countries, it creates more jobs and income for people in that country. This means that businesses produce more and hire more workers, which helps the economy grow. On the other hand, declining real wages, which means that people are earning less money when adjusted for inflation, can lead to decreased consumer spending. When people have less money, they buy fewer goods and services, which can reduce overall demand in the economy. For example, if a family’s income decreases, they might not be able to afford to buy new clothes, which can hurt local stores and businesses.