Use the following to answer questions .
Exhibit: Components of GDP for an Economy 2

-(Exhibit: Components of GDP for an Economy 2) Net exports are negative. This would mean that:
A) imports are larger than exports and there is a trade surplus.
B) exports are larger than imports and there is a trade surplus.
C) imports are larger than exports and there is a trade deficit.
D) exports are larger than imports and there is a trade deficit.

Question

Use the following to answer questions .
Exhibit: Components of GDP for an Economy 2
 
-(Exhibit: Components of GDP for an Economy 2) Net exports are negative. This would mean that:
A) imports are larger than exports and there is a trade surplus. 
B) exports are larger than imports and there is a trade surplus. 
C) imports are larger than exports and there is a trade deficit. 
D) exports are larger than imports and there is a trade deficit.

Quizplus · Accepted Answer

Net exports are calculated by subtracting imports from exports. A negative value for net exports means that imports are larger than exports, indicating a trade deficit.

Use the Following to Answer Questions