Between 2017 and 2018,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?
A) Net exports will increase GDP by $8 billion.
B) The increase in exports is offset by the decrease in imports,so there is no change in net exports and no effect on GDP.
C) Net exports will increase GDP by $16 billion.
D) Net exports will decrease GDP by $8 billion.
Correct Answer:
Verified
Q74: Which of the following is considered a
Q75: Table 8-6 Q76: Investment spending includes spending on Q77: Government spending _ is included in gross Q78: To calculate GDP using the value-added method,one Q80: Consumption expenditures do not include household purchases Q81: Why do we not count the value Q82: People complain that inflation increases the cost Q83: The circular flow of income shows that Q84: Why do we subtract import spending from
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A)stocks.
B)food.
C)changes in business
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