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An American car company sells 200 cars to Germany for a total of $600,000, while the United States imports 100 cars from a German car company for a total of $500,000 from Germany. What would be the effect of this trade agreement on the GDP of the United States?

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dubeyshailja64

The effect of this trade agreement on the GDP of the United States is the GDP of the country will increase due to net exports being positive.

What is an export?

When any individual, organization, or country sends their goods to another country with the objective of sale is called a return. The organization receiving goods will provide money in exchange.

The GDP of a nation over a specific time period calculates the total value of all finished goods and services that are purchased by the end user. It records all production that takes place within a nation's boundaries.

This exchange will help to increase the flow of funds in the country and helps to increase the GDP of a country. When the country has more exports than imports it reflects more incoming cash which helps increase the economy as well.

Learn more about GDP, here:

https://brainly.com/question/15682765

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