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GDP: If a Government exports a product, is it an export or Government?
The GDP formula is: GDP = Consumption + Government Spending + Investments + (Exports - Imports).
So the Government exports $5 billion worth of Oil. It then takes this $5 billion and funds an Education Program in the nation. Does this $5 billion go to "Government Spending? Or to "Export"? Or will this be counted twice? For a total of $10 billion. |
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