The Commerce Department reported that in December 2015, retail sales rose by 0.2 percent, net exports decreased, inventories held by businesses rose by 0.1 percent, and total sales by businesses fell by 0.6 percent. Source: Commerce Department, February 2016 Explain the effect of the fall in net exports on GDP.

Question

simionriley4988 simionriley4988

07-11-2019
Business

contestada

The Commerce Department reported that in December 2015, retail sales rose by 0.2 percent, net exports decreased, inventories held by businesses rose by 0.1 percent, and total sales by businesses fell by 0.6 percent. Source: Commerce Department, February 2016 Explain the effect of the fall in net exports on GDP.

Respuesta :

Otras preguntas

What is the relative mass of an electron?

please answer this equation what is the answer to 1/4(k-1)=10

Which events changed Europe and Asia during the late Middle Ages?

How did the control of the eastern Mediterranean change over time

a partnership is a business organization owned by

Water-rich solutions carrying metallic salts fill cracks and form

How are arthropods able to move despite having a hard exoskeleton

Why did the Republican Henry Cabot Lodge refuse to ratify the League of Nations?

What is the unit and tool to measure the mass of a rock?

what is the answer to 4x-10y=12

Dryomys Dryomys · Answer 1 · 2019-11-07T07:36:27+01:00

Answer:

GDP reduces.

Explanation:

Gross Domestic Product includes four components:

= Consumption spending + investment spending + Government spending + Net exports

It was given that business experiencing a rise in its inventory (0.1 percent) and reduction in the total sales (0.6 percent).

We know that net exports are added to the nation's GDP, so any change in the net exports will also affect the GDP. Therefore, if there is a fall in the net exports then as a result there is a reduction in the GDP.