GDP is $7 trillion. If consumption is $3.5 trillion, investment is $1.4 trillion, and government purchases are $2.1 trillion, then:

A) exports are equal to imports.

B) exports exceed imports.

C) imports exceed exports.

D) net exports cannot be determined from the available information.

Question

Business

Dania Burke

22 March, 07:19

GDP is $7 trillion. If consumption is $3.5 trillion, investment is $1.4 trillion, and government purchases are $2.1 trillion, then:

A) exports are equal to imports.

B) exports exceed imports.

C) imports exceed exports.

D) net exports cannot be determined from the available information.

+3

Answers (1)

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Queenie · Answer 1

A) exports are equal to imports.

Explanation:

As we know that, the formula to compute the GDP is shown below:

GDP = Consumption + Investment + Government purchase + Net exports

$7 trillion = $3.5 trillion + $1.4 trillion + $2.1 trillion + net exports

$7 trillion = $7 trillion + net exports

The net exports is zero that determines that exports are equal to imports

GDP is $7 trillion. If consumption is $3.5 trillion, investment is $1.4 trillion, and government purchases are $2.1 trillion, then:A) exports are equal to imports.B) exports exceed imports.C) imports exceed exports.D) net exports cannot be determined from the available information.

GDP is $7 trillion. If consumption is $3.5 trillion, investment is $1.4 trillion, and government purchases are $2.1 trillion, then:

A) exports are equal to imports.

B) exports exceed imports.

C) imports exceed exports.

D) net exports cannot be determined from the available information.