The reason we include net export expenditures in gross domestic product calculations is:

A. Knowing that the underground economy wasn't included, there was a need to "plug a hole" to improve the equation.
B. Economists wanted to emphasize the macroeconomic effect of the recent growth in foreign imports.
C. Net exports most accurately provide the sales of domestic goods and services exported minus domestic consumption of imported goods and services.
D. The government wanted to boost weak GDP numbers by adding another component to the equation.
E. This is a requirement of the United Nations.

Ans: B. Economists wanted to emphasize the macroeconomic effect of the recent growth in foreign imports.

Business

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