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Old Today, 04:18 AM
 
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Originally Posted by Supposn View Post
WRM20, If USA's annual GDP is $19 trillion, and our annual trade deficit is more than a $0.5 trillion, in that year USA in aggregate purchased over 500 Billion dollars more products that we produced.
Once again, you get this completely wrong. The trade deficit is exports minus imports. That's it. Nothing to do with total GDP or total production. Try reading an economics book.
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Old Today, 04:55 AM
 
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Originally Posted by WRM20 View Post
Once again, you get this completely wrong. The trade deficit is exports minus imports. That's it. Nothing to do with total GDP or total production. Try reading an economics book.
WRM20, balance of trade is a direct factor within the expenditure method for calculating gross domestic product. GDP is the entire net spending for producing goods and service products. Trade surpluses contribute, and trade deficits reduce the resulting calculated GDP amount. That's in recognition of trade balances' effects upon their nation's GDP.

The expenditure method is the conventional method employed worldwide. Any other method to calculate GDP directly or indirectly reflect the nation's balance of trade in a similar fashion.
Originally Posted by Supposn
WRM20, If USA's annual GDP is $19 trillion, and our annual trade deficit is more than a $0.5 trillion, in that year USA in aggregate purchased over 500 Billion dollars more products that we produced.

FYI, refer to this excerpted portion of text
from https://www.investopedia.com/terms/g/gdp.asp “ … The Basics of GDP ... The balance of trade is one of the key components of a country's (GDP) formula. GDP increases when the total value of goods and services that domestic producers sell to foreigners exceeds the total value of foreign goods and services that domestic consumers buy, otherwise known as a trade surplus. If domestic consumers spend more on foreign products than domestic producers sell to foreign consumers —a trade deficit—then GDP decreases. ...”.
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