Between 2015 and 2016,if an economy's exports rise by $8 billion and its imports fall by $8 billion,by how much will GDP change between the two years,all else equal?

Question

Quizplus · Accepted Answer

Net exports are calculated as exports minus imports. In this case, exports have increased by $8 billion and imports have fallen by $8 billion. Therefore, net exports have increased by $16 billion. Since exports are a component of GDP, an increase in net exports will increase GDP. Hence, net exports will increase GDP by $16 billion (Choice C).

Between 2015 and 2016,if an Economy's Exports Rise by $8