Explain why an increase in exports leads to economics growth
Exports are goods proucded domestically. If there is an increase in exports, more workers are employed to meet the demand for exports, leading to a fall in unemployment in the export sector. Moreover exports is part of the AD equations and it is seen as an income in the circular flow of income. Therefore more revenues is generated in the economy, leading to an increase in AD, which leads to an overall increase in economic growth.
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