In calculating total spending,after adding together Consumption,Investment,and Government Purchases,we must
A) add imports and subtract exports
B) add exports and subtract imports
C) compute net consumption and net investment by subtracting products produced abroad
D) compute net consumption and net investment by adding products produced abroad
E) compute net consumption and net investment by add products consumed abroad

Question

Quizplus · Accepted Answer

When calculating total spending (GDP), we must add together Consumption, Investment, and Government Purchases. However, we must also consider the country's net exports, as exports add to total spending while imports subtract from it. Therefore, we should add exports and subtract imports to arrive at the correct total spending.

In Calculating Total Spending,after Adding Together Consumption,Investment,and Government Purchases,we Must