Asked by
jacob jones
on Oct 13, 2024
Verified
GDP is $7 trillion.If consumption is $5 trillion,investment is $2 trillion and government purchases are $1 trillion,then
A) net exports are zero.
B) exports exceed imports by $1 trillion.
C) imports exceed exports by $1 trillion.
D) imports exceed exports by $2 trillion.
E) exports exceed imports by $2 trillion.
Net Exports
The value of a country's total exports minus its total imports; a positive number indicates a trade surplus, and a negative number indicates a trade deficit.
Consumption
The use of goods and services by households.
- Analyze the implications of government purchases, net exports, and consumption on GDP.
- Understand the significance of net exports and how they contribute to the GDP formula.
Verified Answer
SG
Learning Objectives
- Analyze the implications of government purchases, net exports, and consumption on GDP.
- Understand the significance of net exports and how they contribute to the GDP formula.