Table 36-2DomesticGDPExpenditureExportsImportsTotal Expenditures(Y)C + I + G(X)(IM)C + I + G + (X − IM)$2,500$3,100$650$250_____3,0003,400650300_____3,5003,700650350_____4,0004,000650400_____4,5004,300650450_____5,0004,600650500_____5,5004,900650550_____ From Table 36-2, what can you conclude about net exports as GDP rises? a.Net exports fall as GDP rises. b.Net exports rise as GDP rises. c.Net exports are constant as GDP rises. d.Net exports rise and then fall as GDP rises.

The expenditure approach is the most common method in calculating GDP. Under expenditure approach…

Answered: Domestic GDP Expenditure …

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Table 36-2

Domestic				GDP
Expenditure		Exports	Imports	Total Expenditures
(Y)	C + I + G	(X)	(IM)	C + I + G + (X − IM)
$2,500	$3,100	$650	$250	_____
3,000	3,400	650	300	_____
3,500	3,700	650	350	_____
4,000	4,000	650	400	_____
4,500	4,300	650	450	_____
5,000	4,600	650	500	_____
5,500	4,900	650	550	_____

From Table 36-2, what can you conclude about net exports as GDP rises?

	a.	Net exports fall as GDP rises.
	b.	Net exports rise as GDP rises.
	c.	Net exports are constant as GDP rises.
	d.	Net exports rise and then fall as GDP rises.

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