Question

Can NET EXPORT greater than GDP? WHY and WHY NOT

Answer 1

False

GDP is the production value of final goods and services within the boundary of a country in a financial year

It is generally measured on quaterly or yearly basis

By expenditire method, it is calculated by the sum of consumption, investment, government spending and and net export where net export is the difference of export and import

So here we can see that GDP is made up of all the four components in which net export is also part

So the maximum value of net export can be equal to the GDP but it cannot exceed the value of GDP

Also this is only possible in case of hypothetical economy, when we consider the consumption, investment and government spending to be zero

In reality it is not possible