If GDP (measured in billions of current dollars) is $5,465, consumption is $3,657, investment is $741, and government purchases are $1,098, then net exports are:
A) $131.
B) -$131.
C) $31.
D) -$31.

Question

Quizplus · Accepted Answer

Net exports can be calculated using the formula: GDP = Consumption + Investment + Government Purchases + Net Exports. Plugging in the given values: $5,465 = $3,657 + $741 + $1,098 + Net Exports. Solving for Net Exports gives: Net Exports = $5,465 - ($3,657 + $741 + $1,098) = -$31.

If GDP (Measured in Billions of Current Dollars) Is $5,465