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 amount of net exports of goods and services is -$1 million.

Explanation:

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

answer; ///i believe the correct two answer are (1) paid in capital; and (2) earned   capital; good luck

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