positive net exports increase equilibrium GDP while negative net
exports decrease it.
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the GDP flow of product approach is calculated by summing up consumption and investments and government and net exports.=GDP= C+ I+ G+ Net exports==where net exports = exports - imports=the GDP flow of product approach is calculated by summing up consumption and investments and government and net exports.=GDP= C+ I+ G+ Net exports==where net exports = exports - imports=
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Net exports is the total exports minus the total imports. If
this is positive then, there is net capital inflow. If this is
negative, it means there is net capital outflow.