Question

Gross Domestic Product equals $1.2 trillion. If consumption equals $690 billion, investment equals $200 billion, and government spending equals $260 billion, then:

A. exports exceed imports by $50 billion.
B. imports exceed exports by $50 billion.
C. imports exceed exports by $150 billion.
D. exports exceed imports by $150 billion.

Answer 1

A. exports exceed imports by $50 billion.

Step-by-step explanation:

GDP = Consumption spending + Investment + Government Spending + Net Export

Net Export = Export - Import

1.2 = 0.69 + 0.2 + 0.26 + Net Export

Net Export = $0.05 trillion

Net Export was $50 billion. Since net export is positive, exports exceeds import by $50 billion.