In the treatment of American exports and imports,national income accountants

A) subtract exports,but add imports,in calculating GDP.
B) subtract both exports and imports in calculating GDP.
C) add both exports and imports in calculating GDP.
D) add exports,but subtract imports,in calculating GDP.

Question

Lochie Comito · Accepted Answer

Final Answer : D, Explanation :  The national income accountants add the value of exports in calculating GDP as it represents the income generated by the domestic producers. But they subtract the value of imports as it is the expenditure on goods and services produced abroad and it does not generate income for domestic producers. Hence the correct choice is D.

In the treatment of American exports and imports,national income accountants

A) subtract exports,but add imports,in calculating GDP.
B) subtract both exports and imports in calculating GDP.
C) add both exports and imports in calculating GDP.
D) add exports,but subtract imports,in calculating GDP.

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Learning Objectives

Related questions

In the treatment of American exports and imports,national income accountantsA) subtract exports,but add imports,in calculating GDP.B) subtract both exports and imports in calculating GDP.C) add both exports and imports in calculating GDP.D) add exports,but subtract imports,in calculating GDP.

Definitions

Learning Objectives

Learning Objectives

Related questions

In the treatment of American exports and imports,national income accountants

A) subtract exports,but add imports,in calculating GDP.
B) subtract both exports and imports in calculating GDP.
C) add both exports and imports in calculating GDP.
D) add exports,but subtract imports,in calculating GDP.