Between 2011 and 2012,if an economy's exports rise by $8 billion and its imports fall by $8 billion,by how much will GDP change between the two years,all else equal?

Question

Quizplus · Accepted Answer

Net exports are calculated by subtracting imports from exports. In this case, exports have increased by $8 billion while imports have decreased by the same amount, resulting in a net export increase of $16 billion ($8 billion - (-$8 billion)). According to the formula of GDP= C + I + G + (X-M), an increase in net exports increases GDP, so the answer is C.

Between 2011 and 2012,if an Economy's Exports Rise by $8