Exports and Imports Increase

Real exports of goods and services decreased 0.1 percent in the first quarter of 2017, after rising 0.2 percent in the first quarter. Real imports of goods and services increased 3.3 percent, after falling 3.0 percent in the previous quarter.

Source: Statistics Canada, May 31, 2017

a)Explain how the changes in exports and imports reported here influence the quantity of real GDP demanded and aggregate demand. In which of the two quarters did exports and imports contribute more to the change in aggregate demand?

2 Please click on the following link and watch the video. Then summarize your learning from the video.

https://www.khanacademy.org/economics-finance-domain/ap-macroeconomics/national-income-and-price-determinations/fiscal-policy-ap/v/fiscal-policy-to-address-output-gaps-ap-macroeconomics-khan-academy