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The relationship between ne exposts and GDP makes the slope of the ae curve flatter than it would be otherwise
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What is the GDP flow of product Approach?
the GDP flow of product approach is calculated by summing up consumption and investments and government and net exports.=GDP= C+ I+ G+ Net exports==where net exports = exports - imports=the GDP flow of product approach is calculated by summing up consumption and investments and government and net exports.=GDP= C+ I+ G+ Net exports==where net exports = exports - imports=
What are the components of GDP and the difference between real and nominal GDP?
GDP = Consumption + Investment + Govt. spending + net exports (exports - imports). Real GDP is the value of GDP shown in base period dollars, without the effects of inflation and price changes. Nomnal GDP is value of GDP adjusted for inflation.
How is GDP calculated using the expenditures approach?
GDP = Consumption + Investment + Government Purchases + Net Exports
What of these will happen if a country imports less than it exports?
Net exports will be positive and will add to the calculation of GDP.
Explain how exports can be greater than a country's GDP?
gdp includes consumption, investment ,govt spending and net exports.......the last term i,e., net exports is nothing but (exports-imports) .so if imports are far higher than exports then it can make the term gdp less than the term exports .....countries having heavy import based economy will have this anamoly.....especially small countries like singapore luxembourg have this feature....
What is the GDP flow of product Approach?
the GDP flow of product approach is calculated by summing up consumption and investments and government and net exports.=GDP= C+ I+ G+ Net exports==where net exports = exports - imports=the GDP flow of product approach is calculated by summing up consumption and investments and government and net exports.=GDP= C+ I+ G+ Net exports==where net exports = exports - imports=
Net exports are negative?
positive net exports increase equilibrium GDP while negative net exports decrease it.
What are the components of GDP and the difference between real and nominal GDP?
GDP = Consumption + Investment + Govt. spending + net exports (exports - imports). Real GDP is the value of GDP shown in base period dollars, without the effects of inflation and price changes. Nomnal GDP is value of GDP adjusted for inflation.
How is GDP calculated using the expenditures approach?
GDP = Consumption + Investment + Government Purchases + Net Exports
What of these will happen if a country imports less than it exports?
Net exports will be positive and will add to the calculation of GDP.
The relationship between current account balance and GDP?
The relationship between the current account balance and the GDP is that they both reflect the production in the given economy. They both deal with the net production.
Explain how exports can be greater than a country's GDP?
gdp includes consumption, investment ,govt spending and net exports.......the last term i,e., net exports is nothing but (exports-imports) .so if imports are far higher than exports then it can make the term gdp less than the term exports .....countries having heavy import based economy will have this anamoly.....especially small countries like singapore luxembourg have this feature....
What is the smallest component of the GDP?
The smallest component of GDP is net exports. The value of imports, the purchases by United States citizens of foreign-produced goods, is subtracted from the value of exports.
What factors does GDP take into account?
consumption, investment, government spending, net exports
Which transaction in economy should be included in GDP?
i think that it is consumption investment government and net exports
What is the balance of trade?
The balance of trade (or net exports, sometimes symbolized as NX) is the difference between the monetary value of exports and imports of output in an economy over a certain period. It is the relationship between a nation's imports and exports.
How do you measure money in circulation?
By working out the GDP of a country. GDP = C (consumption) + I (investment) + G (govt, spending) + Xports-Mports (net exports)
