Part 1 (0.3 point) Look at the graph and determine which of the following statements are correct. Choose one or more: A. During the COVID-19 recession, exports fell more than imports. B. The trade sector of the economy is more volatile than the economy itself. C. The percentage change in exports and imports tends to move in opposite directions. D. During the Great Recession, exports fell more than imports. Part 2 (0.7 point)
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a. When there is a decrease in the price level, all else held equal, net exports will fall, which causes a decrease in the quantity of real GDP demanded. b. Use the aggregate demand graph to illustrate the effect of net exports on aggregate demand when there is a decrease in the price level, all else held equal. Instructions: Use the tool provided 'New Point' to plot a single point that shows the effect of net exports on aggregate demand (plot only 1 point).
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