In 2015, the United States imported more than it exported; therefore, the sum of consumption plus investment plus government purchases overstated what was produced in America.

Question

Quizplus · Accepted Answer

If a country imports more than it exports, it means that its consumption (C) is greater than its production (GDP). If we add investment (I) and government purchases (G) to C, we get the formula for calculating GDP: GDP = C + I + G + (X - M) (where X is exports and M is imports). Since in this case, M is greater than X, the sum of C + I + G is greater than GDP, which means that the given statement is true.

In 2015, the United States Imported More Than It Exported;