Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 23 - Part VIII - Measuring a Nation's Income - Quick Check Multiple Choice - Page 503: 4

Answer

c. Net exports fall, while GDP is unchanged.

Work Step by Step

When an American purchases a good or service from abroad, net exports fall because net imports rise. The GDP is unchanged since the GDP measures the value of the final goods produced in the U.S. in this case.
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