At the equilibrium GDP for a private open economy,
A) net exports may be either positive or negative.
B) imports will always exceed exports.
C) exports will always exceed imports.
D) exports and imports will be equal.

Question

Quizplus · Accepted Answer

At the equilibrium GDP for a private open economy, net exports (exports minus imports) will be equal to zero. This means that net exports can be either positive, negative, or zero depending on the specific values of exports and imports.

At the Equilibrium GDP for a Private Open Economy