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

14692 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

What is demand and supply in Economics?


How does an increase in the interest rate affect the level of investment?


Evaluate a Government Policy of Inflation


What is the difference between a perfectly competitive market and a monopoly market


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