Respuesta :
A demand shortfall results from an excess demand for goods and services when the equilibrium GDP is higher than the full-employment GDP. This will also imply that exports are not performing well, resulting in negative net exports.
What is Equilibrium?
As "balancing" is the definition of the word "equilibrium," it follows that a chemical reaction represents a balance between the reactants and products involved in the reaction. In some physical processes, such as the melting of ice at 0°C, where both ice and water are present at equilibrium, the equilibrium state can also be observed.
Physical equilibrium refers to the equilibrium that results from physical processes like the melting of solids, the dissolution of salt in water, etc., while chemical equilibrium refers to the equilibrium that results from chemical reactions.
When net exports are positive, an economy's exports outweigh its imports.
Positive net exports indicate higher spending on domestic products and services, which results in higher total expenditure. Additionally, when net exports are negative, it signifies that there is a decrease in local demand for products and services and an increase in import demand, suggesting that overall spending is at its lowest level ever.
If exports outpace imports, then more money is being spent on domestic products and services, which raises total expenditure.
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