Working with Economic Indicators

Chapter 8

Indicators of International Exchange

The economic indicators discussed in earlier chapters focused on economic resources, production, and exchanges within the United States. However, even in discussing the composition of the gross domestic product (GDP), we observed that net exports from the United States to locations outside the United States must be recognized to bring consumption of final goods and services into balance with the use of resources to produce final goods and services. Imports add more final goods for domestic use, but draw on the income and wealth within the United States. On the other hand, exports result in more income and wealth coming to the United States, but sacrifice consumption of outputs from domestic productive ...