where Y is GDP (Gross Domestic Product) of the
country, C is the cost for private consumption, I is the
cost for private investment, G is the cost of public expenditure,
and NX represents net exports, i.e. exports
minus imports, and is an alternative notation of the trade
balance [29].
As noted, this was (and still is) a strong negative aspect
for Greece, putting downward effect on GDP of the
country. The trade balance is equal to the difference between
domestic production (Y), from domestic expenditures
(C + I + G). The last relation shows a reality, which
was noted when it was already too late for Greece, that
state-level economics are similar with households: when
the country spends more than its income, it is forced to
request external loans. Therefore, the trade deficit corresponds
directly to foreign dept of the country [29].