From a macroeconomic point of view, increases in are an addition to aggregate demand, while increases in are a subtraction from aggregate demand. rates of return; exchange rates exchange rates; rates of return exports; imports imports; exports

exports; imports.

Explanation:

Macroeconomics can be defined as the study of behaviors, performance and factors that affect the entire economy. Hence, it focuses on aggregate phenomena such as price level, economic growth, Gross Domestic Product (GDP), inflation, unemployment and national income levels with respect to the central bank, demand or supply shocks, government policies, aggregate spending and savings.

Simply stated, macroeconomics studies the overall operation of the national and global economy.

Trade can be defined as a process which typically involves the buying and selling of goods and services between a producer and the customers (consumers) at a specific period of time.

Basically, trade can be categorized into two (2) main groups and these are;

I. Import: this involves bringing in goods from a foreign country to sell in a different (domestic) country.

II. Export: it involves the sales of goods produced in a domestic country to a foreign country.

From a macroeconomic point of view, increases in exports are an addition to aggregate demand, while increases in imports are a subtraction from aggregate demand.

Aggregate demand (AD) can be defined as the total quantity of output (final goods and services) that is demanded by consumers at all possible price levels in an economy at a particular time.

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