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A country's exports may be written as equal to:

A) GDP minus consumption minus investment minus government spending.

B) GDP minus consumption of domestic goods and services minus investment of domestic goods and services minus government purchases of domestic goods and services.

C) imports.

D) GDP minus imports.

Answer :

A country's exports may be written as equal to GDP minus imports. The correct option is D.

This is because when a country exports, its products are sold to other countries; therefore, the demand for these products is created outside the domestic economy. In this way, the value of exports contributes to the Gross Domestic Product (GDP).

When subtracting imports, we are taking into account the fact that the demand for imported goods is not produced domestically; therefore, it should be deducted to get a more accurate picture of the economic performance of a country.

The formula for calculating GDP is as follows:

GDP = C + I + G + NX

Where:

C = Private Consumption

I = Investment

G = Government Spending

NX = Net Exports (exports - imports)

Therefore, it is clear that a country's exports can be written as equal to GDP minus imports. The correct option is D.

To know more about exports, refer here:

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