France’s Exports and Imports Seasonally adjusted trade data for France showed that exports of goods and services decreased by 2.4 percent in the first quarter of 2017, compared with an increase of 0.4 percent in the fourth quarter of 2016. Imports of goods and services to France increased 2 percent in the first quarter of 2017, compared with a decrease of 1.2 percent in the fourth quarter of 2016.

Source: www.oecd.org, 2017

a. Explain how the changes in exports and imports reported here influence the quantity of real GDP demanded and aggregate demand.

b. In which of the two quarters reported did exports and imports make the greater impact on aggregate demand?