1 The US buys 450 billion of goods and 500 billion of servic

1. The U.S. buys $450 billion of goods and $500 billion of services from China. And China buys $700 billion of goods and $480 billion of services from the U.S. What is U.S. net exports? What is China\'s net export? Does the U.S GDP increase or decrease? By how much does U.S. increase or decrease?

U.S net exports= Exports - Imports

U.S exports = China\'s imports= $(700+480) = $1180 billion

U.S imports= China\'s exports = $(450 +500) = $950 billion.

U.S net exports = $(1180 - 950) = $230 billion.

China\'s net exports = $(950-1180) = -$230 billion.

U.S GDP increase by the increase in the amount of net exports. Therefore, U.S GDP increase by $230 billion.

1. The U.S. buys $450 billion of goods and $500 billion of services from China. And China buys $700 billion of goods and $480 billion of services from the U.S.

1 The US buys 450 billion of goods and 500 billion of servic

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