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

15299 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Using knowledge of PED, when should a firm decrease the price of a good to maximise revenues?


What is the difference between law of diminishing returns to a factor and decreasing returns to scale?


How would you go about calculating inflation using CPI (consumer price index)


Explain the importance of low interest rates in bringing about a recovery from recession in an economy like the UK. (10)


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning