ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -This represents output or income. Because Y is the total amount of goods and services purchased by consumers, businesses, and the government, taking into account foreign trade, it is necessarily the output for the economy. This number is also the gross domestic product of an economy.

Detailed explanation-2: -Net exports (Xn) included the value of all exports from a country minus the value of all imports. Xn = X-M. If a country has a trade deficit then the value of imports is greater than the value of a country’s exports and net exports (Xn) is negative.