Originally Posted by beacon (exports – imports) = Trade Surplus So, GDP = private consumption + gross private investment + government investment + government spending + Trade Surplus Ceteris paribus, GDP up (=economy growing) if Trade Surplus up, OR Trade Deficit (opposite of Trade Surplus) DOWN But need to consider how much of those imports end up as Inventory at end of period as change in Inventories is a component of GDP
Last edited by winner69; 23-11-2023 at 03:47 PM.
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