Between 2011 and 2012,if an Economy's Exports Rise by $8

question 60

Multiple Choice

Between 2011 and 2012,if an economy's exports rise by $8 billion and its imports fall by $8 billion,by how much will GDP change between the two years,all else equal?

• A) Net exports will increase GDP by $8 billion.
• B) The increase in exports is offset by the decrease in imports, so there is no change in net exports and no effect on GDP.
• C) Net exports will increase GDP by $16 billion.
• D) Net exports will decrease GDP by $8 billion.

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