If GDP (measured in billions of current dollars) is $5,465 and the sum of consumption, investment, and government purchases is $5,496, while exports equal $673, imports are:
A) $673.
B) -$673.
C) $704.
D) -$704.

Question

Quizplus · Accepted Answer

GDP is calculated as the sum of consumption, investment, government purchases, and net exports (exports minus imports). Given that GDP is $5,465 and the sum of consumption, investment, and government purchases is $5,496, the difference of $31 billion must be accounted for by net exports. Since exports are $673 billion, to achieve a net export value of -$31 billion (indicating more imports than exports), imports must be $704 billion.

If GDP (Measured in Billions of Current Dollars) Is $5,465