Which statement is false?
A)If net exports were not included in GDP,that figure would be higher.
B)Between the early 1990s and 2007 our trade deficit increased substantially.
C)During the last ten years,our trade balance in services was negative.
D)After the 1970s,our trade balance has been negative.

Question

Quizplus · Accepted Answer

Net exports (exports minus imports) are subtracted from the total GDP calculation. If net exports were not included, GDP would indeed be higher, assuming a country imports more than it exports. The trade deficit of the United States has generally increased from the early 1990s to 2007. The trade balance, particularly for goods, has been negative since the 1970s. However, the United States has maintained a positive trade balance in services for many years, making statement C false.

Which Statement Is False