y-axis A 240 Zone 4 Zone 1 1 Zone 3 B Zone 2 In this graph, zone 2 is characterized by x-axis overemployment and excessive current account deficits. overemployment and excessive current account surpluses. underemployment and excessive current account deficits. underemployment and excessive current account surpluses.
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- y-axis A 240 Zone 4 Zone 1 1 Zone 3 B Zone 2 In this graph, zone 3 is characterized by x-axis underemployment and excessive current account deficits. underemployment and excessive current account surpluses. overemployment and excessive current account surpluses. overemployment and excessive current account deficits.Question 3Explain why a country can have a large trade deficit combined with a current account surplus. In explaining this, provide at least three transactions in the current account besides imports and exports. Explain how current transactions listed in this year’s capital account have implications for transactions in the current account in future years. Provide at least three examples. Suppose that a country has a current account deficit. Explain the three ways in which that deficit can be offset.The GDP for the United States is 18,036 billion and its current account balance is 484 billion. What percent of GDP is the current account balance?
- In 2019 Country A had a current account deficit of $1.2 billion. CountryA's capital account was in a $100 million surplus. In addition, CountryA's factors of production located in foreign countries earned $600 million.Country A had a trade deficit of $800 million. Assume Country A neithergave nor received unilateral transfers. Country A's GDP was $9 billion. Answer the following questions about Country A in 2019. and show your work. i) compute net factor income from abroad of Country A. ii) How much income did foreign factors of production earn in CountryA? iii) Compute Country A's GNE and GNI.Answer questions 18 and 19 based on the following table for a hypothetical country: Exports of goods & services Imports of goods & services Net taxes collected by domestic government Private Saving Gross Domestic Private Investment Net Unilateral transfers paid Personal Consumption Government Purchases Balance on the capital account Statistical Discrepancies 18. The hypothetical country runs a current account A) surplus; $100 B) deficit; $120 C) surplus; $150 D) none of the above 19. The hypothetical country runs a financial account A) surplus; $110 B) deficit; $130 C) surplus; $150. D) none of the above $1000 $1000 $200 $250 $120 $200 $380 $200 $0 $0 of ofThe following table shows the value of credits and debits in four balance-of-payments accounts in the fictional economy of Ghalha. Debits Balance-of-Payments Account (Billions of dollars) 30 25 45 15 Merchandise Services Income Receipts Unilateral Transfers Total Term Based on the total values of Ghalha's debits and credits, there is more Ghalha. This means that Ghalha has a deficit in the current account. Net Exports 115 Current Account Balance Credits (Billions of dollars) 45 10 30 15 Complete the following table based on the credits and debits presented in the previous table. How to Calculate 100 money flowing out of Ghalha to foreign countries than there is flowing into Deficit or Surplus Size of Deficit or Surplus (Billions of dollars)
- An increase in the domestic country's disposable income would Select] and would [ Select I therefore resulting in ISelect] current account. ase in the domestic country's disposable income woul [Select ] ,and would not affect exports decrease exports therefore resulting in Seled account. increase exports An increase in the domestic country's disposable income would [Select] [ Select ] not affect imports decrease imports increase imports therefore resulting in Select] the domestic country's disposable income would Select] and would , therefore resulting i [ Select ] current account. an increase of the no change inthe a decrease of theQ.1.10 Which of the following statements is correct? (2)(1) When a British firm invests in a bicycle manufacturing facility in South Africa,the amount concerned is entered as an inflow on the current account of theSouth African balance of payments.(2) When someone purchases a second‐hand car, the transaction is included inthe calculation of GDP in the year the sale took place.(3) A deficit on the current account of the balance of payments indicates thatthe country exported more than it imported during the period in question.(4) In the base year, the value of nominal GDP is equal to the value of real GDP.To address a persistent current account deficit in the balance of payments, a government could undertake measures such as: A) Discouraging foreign investment B) Reducing government spending on social services C) Devaluing the national currency to make exports more competitive increasing the importar iuxtry goods in the ance of any
- Which of the following is included in a nation's current account? a) Purchases of foreign assets b) Borrowings from abroad c) Foreign purchases of U.S. financial assets d) Investment income receipts e) Purchases of foreign real property( ) 14) According to the absorption approach what happens to China's trade balance following an increase in domestic spending ? 根据吸收论,中国国内支出增加对贸易余额将产生什么影响? A. becomes worse B. improves C. becomes unchangeable D. J curve ( ) 15) What happens to China's trade balance following an increase in income under the monetary approach? 根据货币论,中国的国民收入水平增加对贸易余额将产生什么影响? A. becomes worse B. improves C. becomes unchangeable D. J curveQ2-9 The shape of the curve that shows the effect of currency depreciation upon a country's current account balance over time (with the curve itself being known as the _____) reflects the fact that short-run demand elasticities are sufficiently ______ than long-run elasticities.(Ignore the negative sign on the elasticities.) Select one: a. J curve / lower b. J curve / higher c. supply curve of foreign exchange / lower d. supply curve of foreign exchange / higher