1. Imports, exports, and the trade balance The following table shows the approxi
ID: 1129536 • Letter: 1
Question
1. Imports, exports, and the trade balance The following table shows the approximate value of exports and imports for the United States from 2002 through 2006 Complete the table by calculating the trade surplus or trade deficit both in absolute (dollar) terms and as a percentage of GDP. GDP Exports-Imports Exports (Billions of dollars) 43.7 42.3 40.7 43.5 43.9 Imports (Billions of dollars) 40.8 40.1 40.3 44.5 47.5 (Billions of dollars) (Percentage of GDP) Year (Billions of dollars) 2002 2003 2004 2005 2006 125.0 130.3 141.7 151.7 160.3 Source: "Income, Expenditures, Paverty, 3 Wealth: Gress Destic Produt (GDP), Linited States Census Buresu, United States Departmert of Commercs, last modified April Between 2004 and 2005, the trade surplus in dollar terms and as a percentage of GDP Grade It Now Save & Continue Continue without savingExplanation / Answer
1) 43.7 - 40.8 = 2.9
% of GDP = 2.9/125 x 100 = 2.32
2) 42.3 - 40.1 = 2.2
% of GDP = 2.2/130.3 x 100 = 1.69
3) 40.7 - 40.3 = 0.4
% of GDP = 0.4/141.7 x 100 = 0.28
4) 43.5 - 44.5 = - 1
% of GDP = - 1/151.7 x 100 = - 0.66
5) 43.9 - 47.5 = - 3.6
% of GDP = - 3.6/160.3 x 100 = 2.24
Between 2004 and 2005, trade suplus i.e. (Exports - Imports) decrease in dollar terms and decreases as % of GDP.
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