Asked by Brittany Shackelford on May 29, 2024
Verified
Net exports
A) are the smallest component of GDP.
B) equal exports minus imports.
C) have been negative in the United States since the mid-1970s.
D) All of the choices are true of net exports.
Net Exports
The value of a country's total exports minus its total imports; a positive number indicates a trade surplus, while a negative number indicates a trade deficit.
GDP
The measure of all goods and services produced to their final stages within the confines of a country, valued in market or monetary terms over an identified period, defines the Gross Domestic Product.
- Familiarize oneself with the components and role of net exports in the domestic economic structure.
Verified Answer
ZK
Zybrea KnightJun 04, 2024
Final Answer :
D
Explanation :
Net exports are indeed often the smallest component of GDP, especially in large economies like the United States. They are calculated as exports minus imports. For the United States, net exports have been negative (meaning imports exceed exports) since the mid-1970s, reflecting a consistent trade deficit.
Learning Objectives
- Familiarize oneself with the components and role of net exports in the domestic economic structure.