When calculating GDP, exports are ________ and imports are ________.
A) added; added
B) added; subtracted
C) subtracted; added
D) subtracted; subtracted

Question

Quizplus · Accepted Answer

GDP is calculated by adding up all the goods and services produced in a country over a given period of time. Since exports represent goods and services produced in the country and sold to other countries, they are added to the calculation. On the other hand, imports represent goods and services produced in other countries and consumed in the country, so they need to be subtracted from the calculation to avoid double-counting. Therefore, exports are added and imports are subtracted.

When Calculating GDP, Exports Are ________ and Imports Are ________

When Calculating GDP, Exports Are and Imports Are