EBK MACROECONOMICS
EBK MACROECONOMICS
7th Edition
ISBN: 8220106812686
Author: O'Brien
Publisher: PEARSON
Question
Book Icon
Chapter 7, Problem 7.1.1RQ
To determine

The value of U.S. exports and imports.

Expert Solution & Answer
Check Mark

Explanation of Solution

The value of goods and services is seen as a percentage of total production, that is, the GDP. Typically, since 1980, the value of U.S. exports has been smaller than the value of U.S. imports. For instance, in 2014, the U.S. exports were about 13 percent of GDP while the imports were about 17 percent of GDP.

Since 1970, except for the period of recession (2007-2009), both exports and imports have been steadily rising as a fraction of U.S. GDP. In 1970, both imports and exports were less than 6 percent of the U.S. GDP. In 2014, the imports were about 17 percent of the U.S. GDP whereas the exports were about 13 percent of the U.S. GDP. The imports and exports (even though they are smaller fraction of GDP), they are greater than they were 40 years ago.

Economics Concept Introduction

Concept Introduction:

Import: It refers to goods and services bought domestically but produced in other countries.

Export: It refers to goods and services produced domestically and sold to other countries.

GDP (Gross Domestic Product): GDP refers to the market value of all final goods and services produced in an economy during an accounting year.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Knowledge Booster
Background pattern image
Recommended textbooks for you
Text book image
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:9780190931919
Author:NEWNAN
Publisher:Oxford University Press
Text book image
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Text book image
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Text book image
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Text book image
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Text book image
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education