In the economy of Ukzten in 2010, consumption was $1000, GDP was $1950, government purchases were $500, and investment was $700. What were Ukzten's net exports in 2010?

Question

Quizplus · Accepted Answer

By using the formula:
GDP = Consumption + Investment + Government Spending + Net Exports
We can rearrange the formula to solve for Net Exports:
Net Exports = GDP - Consumption - Investment - Government Spending

Plugging in the given values, we get:

Net Exports = $1950 - $1000 - $700 - $500
Net Exports = -$250

Since the value is negative, it means that Ukzten had a trade deficit in 2010, meaning that it imported more than it exported.

In the Economy of Ukzten in 2010, Consumption Was $1000