According to the national spending approach,net exports must be subtracted from all other spending in the economy in the calculation of GDP.

Question

Quizplus · Accepted Answer

In the national spending approach to calculating GDP, net exports (exports minus imports) are added to consumption, investment, and government spending, not subtracted. This is because net exports represent the net spending on a country's goods and services by the rest of the world.

According to the National Spending Approach,net Exports Must Be Subtracted