Attention is most often focused on net exports because that figure measures the net effect of a nation's trade in goods and services with the rest of the world . In 2000, net exports were 5.8% of GNP and in 2005, they were 6.8% . If the information above
A
Exports were greater than imports in 2005, but not in 2000.
B
Exports increased from 2000 to 2005
C
In 2005, the increased in Exports was nearly double of that in 2000.
D
In 2000, net exports were gerater than in 2005.
Correct Answer: Exports were greater than imports in 2005, but not in 2000.
The expenditures approach says GDP = consumption + investment + government expenditure + exports – imports. The income approach sums the factor incomes to the factors of production. The output approach is also called the “net product” or “value added” approach.