The gross domestic product (GDP) expenditures approach is an effective way to address the components of GDP. However, when it comes to net exports, textbooks often lack detail. Twenty principles-level textbooks were examined for their treatment of net exports within the GDP expenditures approach. Using a scoring rubric, I conclude that only half provide enough detail for an uninformed reader to arrive at a correct understanding of net exports. In this paper, I will correct misconceptions, make three specific recommendations for improving GDP instruction, and provide a short lesson that can be easily implemented in the classroom.
Scott Wolla
Wolla, S. (2018). The Textbook Treatment of Net Exports: Will the Uninformed Reader Understand?. Journal of Economics Teaching, 3(2), 232-253. DOI: 10.58311/jeconteach/9d595fc79391cbcc3a669af7c6eb5af0f70b5869