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. 

HA
Answered by Hysam A. Economics tutor

13372 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

What's the difference between an elastic good and an inelastic good?


Evaluate whether higher government spending will always increase inflation.


Explain how government policies can reduce the natural rate of unemployment


Explain how a change in Government spending may affect the average price level and real GDP


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences