Which of the following is true of exports and imports?
A)Both imports and exports are added to a nation's gross domestic product (GDP).
B)Both imports and exports are subtracted from a nation's gross domestic product (GDP).
C)Imports are added and exports are subtracted from a nation's gross domestic product (GDP).
D)Exports are added and imports are subtracted from a nation's gross domestic product (GDP).
E)Neither imports nor exports are included in a nation's gross domestic product (GDP).

Question

Quizplus · Accepted Answer

Exports are added to a nation's GDP because they represent economic activity and income generated within the country. Conversely, imports represent goods produced and consumed outside of the country, which do not contribute to the country's domestic production, and are therefore subtracted from GDP.

Which of the Following Is True of Exports and Imports