In 2012,which component of GDP had a negative value?
A)consumption
B)investment
C)government spending
D)net exports

Question

Quizplus · Accepted Answer

According to the formula of GDP, which is GDP = C + I + G + NX (where C = consumption, I = investment, G = government spending, and NX = net exports), if the value of net exports is negative, it would subtract from the GDP. In 2012, the US had a negative value for net exports, which means that the country imported more goods and services than it exported. Therefore, D (net exports) is the correct answer.

In 2012,which Component of GDP Had a Negative Value