In the treatment of American exports and imports,national income accountants

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Quizplus · Accepted Answer

National income accountants add the value of exports to GDP because exports are a component of domestic production. However, imports represent goods and services produced in other countries and purchased by residents of the country being measured. Therefore, imports must be subtracted from GDP to avoid overestimating the value of domestic production. Hence, national income accountants add exports but subtract imports in calculating GDP.

In the Treatment of American Exports and Imports,national Income Accountants