x

Net trade in aggregate demand

Net trade in aggregate demand

Aggregate demand and aggregate supply diagram showing higher net trade shifting aggregate demand right from AD1 to AD2, with SRAS and equilibrium points E1 and E2 labelled Net trade is the value of exports minus the value of imports, written as X−MX - MX−M. Exports add demand for domestic output, while imports are spending on foreign output.

2.2.5 Net trade (X-M) Lesson

  1. A Level
  2. /Economics
  3. /2.2.5 Net trade (X-M)