Understanding Net Trade and Aggregate Demand

3,047 views · Published 3 May 2017 · 2:25 · Indexed 24 October 2026

Channel: tutor2u · 2017 · Education

Watch on YouTube

The net trade balance for a country has a direct effect on the level of aggregate demand. If a country is running a trade surplus then, other factors remaining the same, this increases aggregate demand because the value of exports of goods and services exceeds the value of imports. The reverse is true for a country that runs a trade deficit.

More from this channel

• 23:17 AS Economics Revision Webinar - Living Standards & HDI

  tutor2u

  2,594 views · 18 May 2015

• 3:11 MCQ Teaching Activity: Basic Quiz

  tutor2u

  1,175 views · 15 September 2015

• 43:56 OCR - F585 Economics - Extract 2: Globalisation and Balance of Payments Imbalances

  tutor2u

  3,249 views · 5 April 2016

• 43:36 OCR F585 Economics - Extract 3 - Primary Product Dependency and the Terms of Trade

  tutor2u

  3,030 views · 8 April 2016

• 13:46 Answering Supported Multiple Choice

  tutor2u

  1,875 views · 18 April 2016

• 6:14 OCR F585 Short - Extract 1 (Importance of Trade)

  tutor2u

  317 views · 2 May 2016

• 8:18 OCR F585 Short - Extract 1 (Malawi)

  tutor2u

  349 views · 2 May 2016

• 5:35 The Slowdown in World Trade

  tutor2u

  2,054 views · 4 May 2016