Practice Net Exports (x - M) (2.2.4.4) - Chapter 2: Theory of Income and Employment
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Net Exports (X - M)

Practice - Net Exports (X - M)

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Practice Questions

Test your understanding with targeted questions

Question 1 Easy

What is the formula for calculating net exports?

💡 Hint: Remember to think about what is being sold and bought.

Question 2 Easy

If a country has exports of $200 million and imports of $150 million, what are its net exports?

💡 Hint: Apply the formula for net exports.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

What does net exports measure?

Total domestic production
Total domestic consumption
Exports minus Imports

💡 Hint: Focus on the relationship between what we sell abroad and what we buy.

Question 2

True or False: If a country has more imports than exports, it has positive net exports.

True
False

💡 Hint: Think about the terms 'exports' and 'imports'.

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Challenge Problems

Push your limits with advanced challenges

Challenge 1 Hard

A country experiences a significant economic downturn, decreasing global demand for its goods. Explain how this might affect its net exports and suggest government policy responses.

💡 Hint: Consider both ends of the trade balance.

Challenge 2 Hard

Analyze a situation where the government imposes tariffs on imports. How is this expected to affect net exports and aggregate demand?

💡 Hint: Think about consumer choices and producers' responses.

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Reference links

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