If consumption was 70 percent of GDP and investment and government expenditure were both 18 percent each, then we see that
A)we must subtract depreciation from investment so that the components of GDP do not exceed 100 percent.
B)exports must be more than imports.
C)GDP can be over 100 percent because it is "gross" rather than "net."
D)the error is due to rounding.
E)exports must be less than imports.

Question

Quizplus · Accepted Answer

The total percentage of GDP accounted for by consumption, investment, and government expenditure is 106%. To balance the GDP equation, net exports (exports minus imports) must be negative, meaning imports exceed exports.

If Consumption Was 70 Percent of GDP and Investment and Government