three components down, one to go! that last component is called net exports. for example, let's start with an economy with consumption of $350, economic investment of $200, and government purchases of $180. if overall gdp calculated via the expenditure method is $700, then what must that tell us about net exports?

Respuesta :

The situation tells us that net export must be less than economic investment.

A country's overall trade is gauged by its net exports. The calculation of net exports is as easy as subtracting the value of all the products and services a country exports from the value of all goods and services it imports. A country with positive net exports has a trade surplus, whereas a country with negative net exports suffers a trade deficit. Thus, a country's net exports are a part of its overall trade balance. A nation with positive net exports makes more money from items sold abroad than it does from all of its imports. All of the products and services that a nation exports to other countries include goods, freight, travel, tourism, and communications or economic transactions include net exports.

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