Question

Net exports equal GDP minus domestic spending on:

a. all goods and services.
b. domestic goods and services.
c. domestic goods and services minus foreign spending on domestic goods and services.
d. all goods and services plus foreign spending on domestic goods and services.

Answer 1

a. all goods and services.

Step-by-step explanation:

Exports are the goods and services produced within the country but sold to customers in foreign nations. Net export is the difference between total exports and total imports.

GDP is the total value of the goods and services produced in a country in a period. GDP will include all products consumed within the country or exported. Exports are, therefore, a part of a country's GDP.

Since exports are consumed outside the country, net exports can be calculated by deducting exports from all the goods and services produced within the country.