The value of U.S.imports is
A)added to exports when calculating GDP because imports reflect spending by Americans.
B)subtracted from exports when calculating GDP because imports do not constitute spending by Americans.
C)subtracted from exports when calculating GDP because imports do not constitute production in the United States.
D)added when calculating GDP because imports do not constitute production in the United States.

Question

Quizplus · Accepted Answer

Imports are subtracted in GDP calculations because they represent spending on foreign-produced goods and services, not domestic production.

The Value of U.S.imports Is