Question

In the treatment of U.S. exports and imports, national income accountants _____. rev: 04_09_2018 Multiple Choice subtract exports but add imports in calculating GDP subtract both exports and imports in calculating GDP add both exports and imports in calculating GDP add exports but subtract imports in calculating GDP

Answer 1

Answer:

The correct answer is: add exports but subtract imports in calculating GDP.

Explanation:

National income refers to the production of goods and services by the residents of a nation within the geographical boundaries of a nation in a given period.

In the calculation of national income, net exports are included. This net export is the difference between exports and imports. In other words, we can say that exports are added and imports are included.