Suppose exports are greater than imports.Given this information,we know with certainty that A)a trade surplus exists. B)GNP GDP. C)GNP

Question

Suppose exports are greater than imports.Given this information,we know with certainty that
A)a trade surplus exists.
B)GNP > GDP.
C)GNP < GDP.
D)the change in business inventories is positive.

Quizplus · Accepted Answer

When exports are greater than imports, it means that the country has a trade surplus. This indicates that the country is producing more goods and services than it is consuming, and is exporting the excess to other countries. Therefore, choice A is the best answer. The information provided does not give any indication of the relationship between GNP and GDP, or the change in business inventories, so choices B, C, and D are incorrect.

Suppose Exports Are Greater Than Imports