If exports rise and imports fall, what will happened to GDP?

Question:

If exports rise and imports fall, what will happened to GDP?

Gross Domestic Product:

The Gross Domestic Product is the quantitative indicator of all goods and services manufactured at a given time.t is a relevant indicator of the country, as it helps track the quantity of output within its economy as well as acting as a proxy for living standards.

Answer and Explanation:

Exporting goods means selling goods to the international markets, to customers, companies or government. Exports add money to the country, which increases the Gross Domestic Product of the exporting country.

When a nation imports product, it purchases products from foreign producers. The money spent on the nation, leaves from the economy. When imports fall, Gross Domestic Product will rise.

Therefore, when export rise and import fall leads to trade surplus and rise in Gross Domestic product.


Learn more about this topic:

Loading...
Gross Domestic Product: Definition and Components

from Economics 102: Macroeconomics

Chapter 4 / Lesson 3
66K

Related to this Question

Explore our homework questions and answers library