Question

Would the following items make GDP for the United States appear lower or higher than it really is? In the past few decades, the share of GDP represented by exports and imports has risen

Answer 1

The rise in the share of exports and imports in the United States GDP would make it appear higher.

Step-by-step explanation:

The rise in the share of GDP represented by exports and imports would make the GDP for the United States appear higher than it really is.

When the share of exports and imports in GDP increases, it indicates that international trade is contributing more to the economy. This can be seen as a positive sign, as it reflects the ability of a country to engage in global markets and tap into opportunities beyond its borders. A higher share of exports and imports indicates that the economy is more interconnected with the rest of the world.

For example, if the share of exports and imports in the US GDP increases from 20% to 30%, it suggests that trade is playing a more significant role in the economy, and the US is benefiting from global commerce.