If a country has a GDP of $10,000, consumer spending of $6,000, investment spending of $1,000, and government spending of $4,000, then the country's exports are _____ than the imports.
A) $1,000 more
B) $1,000 less
C) $2,000 more
D) $2,000 less

Question

Quizplus · Accepted Answer

The GDP (Gross Domestic Product) is calculated as the sum of consumer spending, investment spending, government spending, and net exports (exports minus imports). Given the GDP is $10,000, consumer spending is $6,000, investment spending is $1,000, and government spending is $4,000, the sum of these components is $11,000, which is $1,000 more than the reported GDP. This means that imports exceed exports by $1,000 to balance the equation, making the correct answer that exports are $1,000 less than imports.

If a Country Has a GDP of $10,000, Consumer Spending