Which of the following is subtracted from the GDP equation?

Net exports

Net imports

Imports

Exports

That is correct.
That is incorrect.
Oops… some

1 answer

In the GDP equation, net exports are subtracted. The GDP equation is typically expressed as:

GDP = C + I + G + (X - M)

Where:

  • C = Consumption
  • I = Investment
  • G = Government Spending
  • X = Exports
  • M = Imports

Net exports (X - M) is the term that is subtracted, as it accounts for the difference between what a country exports and what it imports.

So, the answer is Net exports.