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Imports, exports, and the trade balance The following table shows the approximat

ID: 1194891 • Letter: I

Question

Imports, exports, and the trade balance The following table shows the approximate value of exports and imports for the United States from 1968 through 1972. Complete the table by calculating the surplus or deficit both in absolute (dollar) terms and as a percentage of GDP. If necessary, round your answers to the nearest hundredth.

1. Imports, exports, and the trade balance The following table shows the approximate value of exports and imports for the United States from 1968 through 1972 Complete the table by calculating the surplus or deficit both in absolute (dollar) terms and as a percentage of GDP. If necessary, round your answers to the nearest hundredth Exports Imports Exports (Billions of dollars) 47.9 51.9 59.7 63.0 70.8 Imports (Billions of dollars) 46.6 50.5 55.8 62.3 74.2 GDP (Billions of dollars) (Billions of dollars) (Percentage of GDP) Year 1968 1969 1970 1971 1972 910.0 985.0 1,039.0 1,127.0 1,238.0 Source:"Income, Expenditures, Poverty, & Wealth: modified April 2011, accessed Ju /gross_domestic_product_gdp.ht GDP)," United States grew tes Department of Commerce, last grew dia/statab/cats/inc wealth surplus ttp; remained the same shrank deficit shrank remained the same Between 1968 and 1969, the in dollar terms and as a percentage of GDP.

Explanation / Answer

The trade balance in a economy is given as the export minus import for a given period of time. The surplus of export over import is called trade surplus and import over export is called trade deficit.

The completed table is given below.

Year

GDP

Export

Import

Export-Import

(in dollar terms)

Export-Import

(as a percentage of GDP)

1968

910

47.9

46.6

1.3

0.142857

1969

985

51.9

50.5

1.4

0.142132

1970

1039

59.7

55.8

3.9

0.375361

1971

1127

63

62.3

0.7

0.062112

1972

1238

70.8

74.2

-3.4

-0.27464

Between 1968 and 1969 surplus grew in dollar terms and remained the same as a percentage of GDP.

Year

GDP

Export

Import

Export-Import

(in dollar terms)

Export-Import

(as a percentage of GDP)

1968

910

47.9

46.6

1.3

0.142857

1969

985

51.9

50.5

1.4

0.142132

1970

1039

59.7

55.8

3.9

0.375361

1971

1127

63

62.3

0.7

0.062112

1972

1238

70.8

74.2

-3.4

-0.27464