When do net exports of goods and services increase?Net exports of goods and services increase whenO A. investment increasesB.government expenditure on goods and services increasesC. exports of goods and services increase and imports of goods and services increaseO D. exports of goods and services decrease but imports of goods and services decrease by more than exports dec▶

Net exports refers to the worth of a nation's complete exports minus the worth of its all out…

Answered: When do net exports of goods and…

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Production And Growth

Section: Chapter Questions

Problem 5CQQ

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Between 2017 and 2018, the exports of the X economy decreased by $5 billion and its imports increased by $5 billion. All else equal? By how much has the GDP changed between the two years? Select one: a. The change in net exports will decrease GDP by $5 billion. O b. The change in net exports will decrease GDP by $10 billion. C. d. The change in net exports will increase GDP by $5 billion. O e. The decrease in exports is offset by the decrease in imports, so there is no change in net exports and no effect on GDP.
Which of these items will increase the level of national income? O a. Higher gross output b. Lower net factor income from abroad O c. Higher intermediate consumption O d. Higher depreciation
Item Personal consumption expenditure Government expenditure on goods and services Net taxes Gross private domestic investment Imports of goods and services Exports of goods and services Millions of dollars 80 30 35 20 10 20 Use the information in the table above to calculate the value of net exports. O $10 million $30 million $0 -$10 million
If Ford sells 200 Explorers for a total of $400,000 to Germany, while the United States imports 100 BMWS for a total of $500,000 from Germany, a. U.S. net exports is positive. O b. Germany GDP decreases. U.S. GDP increases because it sells more Explorers. d. U.S. GDP decreases because net exports are negative.
Question 4 If Chinese consumers decrease their demand for apples from New Zealand, then (other things being equal) China's: OA Imports and net exports fall O B. Exports and net exports fall OC Exports fall and net exports rise OD. Imports fall and net exports rise
In the GDP equation, business spending is referred to as: O Consumption Investment O Government O Net Exports
The University of Chicago, a privately-owned school, is currently building a new hospital. This will be classified in U.S. GDP as because O consumption; it-will provide medical services to consumers O net exports; most construction workers are foreigners O government purchases; the construction constitutes government expenditure O investment; it increases the capital stock
Item Consumption expenditure. Investment Government expenditure on goods and services Exports of goods and services Imports of goods and services 8. Based on the data in the table, what does GDP equal? O $11,183 billion O $11.023 billion O $11.103 billion O $12.393 billion Billions of Dollars 8180 1520 1403 1290 1370
Ford, an American-owned company, operates a factory in Mexico. The value of the output produced in this factory is counted O in neither U.S. nor Mexico GDP. O in both U.S. and Mexico GDP. O only in Mexico GDP O only in U.S. GDP.
a. Economists referring to investment mean the: O purchase of financial assets within an economy. O purchase of financial and physical assets within an economy. O formation of new productive capital within an economy. O development of new technologies to increase productivity. O b. Investment is used to buy: O goods and services that will enhance productivity and increase output. O services, but not goods, that will enhance productivity and increase output. O goods, but not services, that will enhance productivity and increase output. c. Determine whether the following transactions are included in gross investment. i. New residential hòusing: Included in gross investment ii. Changes in inventories: Included in gross investment O iii. Changes in depreciation: Included in gross investment iv. Purchase new shares of a company: Included in gross investment x v. Firms purchasing new capital: | Included in grøss investment arch
Under the expenditure categories to measure GDP, why are net exports (exports minus imports) included instead of just exports? Select one: a. GDP is a measure of all final goods and services purchased by American citizens around the world. O b. The imports include goods that were produced with intermediate goods made by American firms. O c. The values of C, I and G include spending on all final goods and services, including imports, and these imports must be subtracted out. O d. The government wants to ignore income that Americans spend on foreign-made products.
. If a U.S. citizen buys a coat made in China, the a. U.S. consumption increases and U.S. net exports decrease, thus, U.S. GDP decreases. b. U.S. consumption increases and U.S. net exports decrease, thus, U.S. GDP is unaffected. c. U.S. consumption decreases and U.S. net exports increase, thus, U.S. GDP increases. d. U.S. consumption decreases and U.S. net exports increase, thus, U.S. GDP is unaffected.

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