eli5: What is the difference between GDP and the sum total of a country’s exports?

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eli5: What is the difference between GDP and the sum total of a country’s exports?

In: Economics

4 Answers

Anonymous 0 Comments

GDP is not exports. GDP is the money that moves around *in* the country as well as flowing in or out. GDP represents how much money there is and how much it moves, which when divided by the population subsequently represents how much the average person makes/spends in a year.

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