Asked by
Karen Knight
on Oct 13, 2024
Verified
GDP is $7 trillion.If consumption is $4.2 trillion,investment is $1.4 trillion,and government purchases are $2.1 trillion,then
A) exports are equal to imports.
B) exports exceed imports by $0.7 trillion.
C) imports exceed exports by $0.7 trillion.
D) exports are equal to $0.7 trillion.
Government Purchases
Expenditures by government entities on goods and services that are consumed in the provision of public services and for public investment.
Net Exports
The value of a country's total exports minus its total imports, reflecting the balance of trade.
- Examine the effects of government spending, exports minus imports, and consumer spending on the Gross Domestic Product.
- Comprehend the importance of net exports and their role in contributing to the Gross Domestic Product equation.
Verified Answer
DG
Learning Objectives
- Examine the effects of government spending, exports minus imports, and consumer spending on the Gross Domestic Product.
- Comprehend the importance of net exports and their role in contributing to the Gross Domestic Product equation.