Which component of current U.S. GDP under the expenditure approach is most likely to be negative?
A)consumption
B)government purchases
C)net exports
D)investment

Question

Which component of current U.S. GDP under the expenditure approach is most likely to be negative?
A)​consumption
B)​government purchases
C)​net exports
D)​investment

Quizplus · Accepted Answer

Net exports are the difference between exports and imports. If imports exceed exports, net exports will be negative, which brings down the overall GDP in the expenditure approach. This has been the case for the United States in recent years, as imports have exceeded exports, resulting in a negative contribution from net exports to GDP.

Which Component of Current U