If the value of exports equals $6.5 billion and the value of imports equals $8.0 billion in a year,then:
A)together imports and exports add $1.5 billion to the gross domestic product (GDP).
B)together exports and imports add $6.5 billion to the gross domestic product (GDP).
C)together exports and imports reduce the gross domestic product (GDP)by 1.5 billion.
D)together exports and imports add nothing to the gross domestic product (GDP).

Question

Quizplus · Accepted Answer

Net exports (exports minus imports) are negative, reducing GDP by $1.5 billion.

If the Value of Exports Equals $6