Explain Why Exports Are Added To, and Imports Are Subtracted

question 23

Essay

Explain why exports are added to, and imports are subtracted from, aggregate expenditures in moving from a closed to an open economy.

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Definitions:

Knowledge of Defect

Awareness of a flaw or imperfection in a product or service before a transaction or agreement.

Inadvertently Sells

The act of selling something accidentally or without the intention of doing so.

Special Property Interest

A legal right or claim to real estate or property that grants certain uses or privileges to the holder beyond simple ownership.

Trial Sale

A temporary, conditional sale of a product to a customer, allowing the customer to test and evaluate the product before making a final purchase decision.