ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The GDP calculation accounts for spending on both exports and imports. Thus, a country’s GDP is the total of consumer spending (C) plus business investment (I) and government spending (G), plus net exports, which is total exports minus total imports (X – M).

Detailed explanation-2: -The formula for net exports is a simple one: The value of a nation’s total export goods and services minus the value of all the goods and services it imports equals its net exports.

Detailed explanation-3: -This is often written as C + I + G + (X-M), where C is personal consumption expenditures, I is investment, G is government purchases of goods and services, X is exports, and M is imports. Together, this is all of Gross Domestic Product, or GDP.

Detailed explanation-4: -Net Exports = Value of Exports – Value of Imports Where: Value of exports is the amount of money generated by a given country for goods and services from a foreign market. Value of Imports is the amount of money that the nation has spent on services and goods from other countries.

Detailed explanation-5: -Net exports = Total exported goods and services-Total imported goods and services. Net exports as GDP percentage = (Net exports in dollar amount / GDP) x 100. Net imports = Total imported goods and services-Total exported goods and services. 03-Feb-2023