Net exports is defined as exports minus imports. Because of this minus sign, net exports can be negative or positive, depending on the sizes of exports and imports. If exports are greater than imports, then net exports are positive, resulting in a “trade surplus.” On the other hand, if imports are greater than exports, then net exports are negative, resulting in a “trade deficit.” Using this information, Situation (2) has a _____, meaning that U.S. GDP for Situation (2) is _____ $18 trillion.
A. trade deficit...greater than
B. trade deficit...less than
C. trade surplus...greater than
D. trade surplus...less than