A very small country's gross domestic product is $12 million.
a) If government expenditures amount to $7.5 million and gross private domestic investment is $5.5 million, what would be the amount of net exports of goods and services?

The gross domestic product (GDP) is equal to the total value of the products and services that are produced in a country in a specific period of time. In this case, we will have that GDP would be:

GDP= I+G+NX

I= investment

G= government expenditure

NX= net exports

Then, we replace the formula and isolate NX:

$12=$5.5+$7.5+NX

NX= $12-$5.5-$7.5

NX= -$1

A very small country's gross domestic product is $12 million. a) If government expenditures amount to $7.5 million and gross private domestic investment is $5.5 million, what would be the amount of net exports of goods and services?

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A very small country's gross domestic product is $12 million.
a) If government expenditures amount to $7.5 million and gross private domestic investment is $5.5 million, what would be the amount of net exports of goods and services?