There are four components that we use to measure GDP: consumption, investment, government spending and net exports. Which of these is always negative in the U.S. economy?

Question

a. Consumption

b. Investment

c. Government Spending

d. Net Exports

Answer 1

Net Exports are negative in the US, because the US imports more than it exports. When imports exceed exports, there is a trade deficit, which is represented as a negative net exports in calculating a country's GDP.