AP MacroeconomicsAggregate Demand & Supply
Net Export Effect
The net export effect is the change in net exports that results from a change in the price level.
When the price level rises in a country, its goods and services become more expensive relative to foreign goods and services. This leads to a decrease in exports and an increase in imports, causing net exports to fall. Conversely, when the price level falls, net exports rise as exports increase and imports decrease.
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