The following are national income account data for a hypothetical economy in billions of dollars: gross private domestic investment ($320), imports ($40), exports ($22), personal consumption expenditures ($2,460), and government purchases ($470)

Economics May 27, 2021

The following are national income account data for a hypothetical economy in billions of dollars: gross private domestic investment ($320), imports ($40), exports ($22), personal consumption expenditures ($2,460), and government purchases ($470). What is Net Exports in this economy?
Multiple Choice CD -18 billion CD40 billion 0 22 billion 0 62 billion

Expert Solution

Computation of Net Exports in the Economy:

Net Exports = Exports - Imports

= $22 billions - $40 billions

Net Exports = -$18 billions

So, the correct option is 1st "-$18 billion".

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote