Which of the following is subtracted from the GDP equation?

Question

Net exports

Net imports

Imports

Exports

That is correct.
That is incorrect.
Oops… some

Answer 1

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.