GDP in an economy is $4,600 billion.Consumer expenditures are $3,500 billion, government purchases are $900 billion, and gross investment is $400 billion.Net exports are:
A)+$400 billion.
B)-$400 billion.
C)+$200 billion.
D)-$200 billion.

Question

Quizplus · Accepted Answer

GDP = C + I + G + NX 
4,600 = 3,500 + 400 + 900 + NX
NX = 4,600 - 3,500 - 400 - 900 = -$200 billion, which is a negative number indicating a trade deficit. Therefore, the correct answer is D.

GDP in an Economy Is $4,600 Billion