Concept explainers
The value of U.S. exports and imports.
Explanation of Solution
The value of goods and services is seen as a percentage of total production, that is, the
Since 1970, except for the period of recession (2007-2009), both exports and imports have been steadily rising as a fraction of U.S. GDP. In 1970, both imports and exports were less than 6 percent of the U.S. GDP. In 2014, the imports were about 17 percent of the U.S. GDP whereas the exports were about 13 percent of the U.S. GDP. The imports and exports (even though they are smaller fraction of GDP), they are greater than they were 40 years ago.
Concept Introduction:
Import: It refers to goods and services bought domestically but produced in other countries.
Export: It refers to goods and services produced domestically and sold to other countries.
GDP (Gross Domestic Product): GDP refers to the market value of all final goods and services produced in an economy during an accounting year.
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Economics (6th Edition)
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