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Can a nation have a negative GDP?

A) No, because of negative net exports.
B) Yes, because of negative net exports.
C) Yes, because GDP measures the market value of products and that can be negative.
D) No, because GDP measures the market value of products and that can't be negative.

2 Answers

1 vote

Answer:

D) No, because GDP measures the market value of products and that can't be negative

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User EpicVoyage
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No, a nation cannot have a negative GDP. Because GDP measures the market value of products and that can't be negative.

Answer: Option D

Explanation:

Gross Domestic Product is supported to evaluate the economy and its performance of a country. It is calculated by adding the complete value of every products and services in the country.

The market values of products cannot be negative as every product or service has value. There might be cases where there will be zero imports, exports, production and expenditure. In that situation, the GDP of a country will be zero but it will not be negative.

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User Ian Chu
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