New answers tagged


You are correct in most of your arguments. but Note that $ GDP = C + I + G + (X - M) $ M is rather just an accounting variable, since GDP measures only the domestic production, there is a need to substract M from imported expenditures. However, note that $ NX = X - M$ which also includes the export variable, therefore if there is a trade deficit due to ...

Top 50 recent answers are included