Pearson Etext For Macroeconomics -- Access Card (10th Edition)
10th Edition
ISBN: 9780135634943
Author: Andrew B. Abel, Ben S. Bernanke, Dean Croushore
Publisher: PEARSON
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Chapter 1, Problem 5RQ
To determine
To explain: the concepts of trade deficits and trade surpluses. To determine the
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A) Does this economy have a trade deficit or a trade surplus?
B) What is the GDP for this economy?
C) What method are we using here to compute GDP? (Income, production or expenditure)
Generally, how does the standard of living in the United States today compare to the standard of living in other countries? To the standard of living in the United States a century ago?The Bureau of Economic Analysis, or BEA, is a government agency collecting various U.S. economy statistics. From the BEA’s website, find data for the most recent year available on U.S. exports and imports of goods and services. Is the United States running a trade surplus or deficit? Calculate the ratio of the surplus or deficit to U.S. exports.There are many people out there providing opinions on the economy. How can differences of opinion about economic policy recommendations be resolved?
Question: what is the equilibrium level in 2017? what is the trade balance in 2017? what is the budget balance in 2017? what is the level of investment in 2017? Answer in millions of dollars
Chapter 1 Solutions
Pearson Etext For Macroeconomics -- Access Card (10th Edition)
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Similar questions
- If imports exceed exports, is it a trade deficit or a trade surplus? What about if exports exceed imports?arrow_forwardWhat is the difference between trade deficits and balance of trade?arrow_forwardWhen is a trade deficit likely to work out well for an economy? When is it likely to work out poorly?arrow_forward
- The table above gives the values of different expenditures in the United States. Answer the following questions about the United States. What is the value of net exports of goods and services? In addition, why can this trade deficit raise the issues for the US economy? What is the amount of GDP from the table?arrow_forwardIn 2010, the economy of Minitown exported $1800 worth of goods and services and imported $1550 worth of goods and services. What was Minitown’s trade balance? Was Minitown running a trade surplus or deficit?arrow_forwardIf consumption is $12 billion, investment is $5 billion, government purchases are $6 billion, exports are $3 billion, and imports are $5 billion, calculate GDP. (Do not include the dollar sign or billion in your answer. So, if your answer is $35 billion, just write in 35 ) is there a trade surplus or deficit?arrow_forward
- Suppose we have an economy where C = $30 Billion, I = $50 Billion, G = $20 Billion, Imports = $2 Billion, and Exports = $5 Billion. What is the trade balance this economy? a. What is the trade balance for this economy? NX = $ Billion b. What is the GDP for this economy? GDP = $ Billionarrow_forwardLet us imagine that there is a country which displays the following statistics. C (Consumption) is one-half of GDP, and I (Investment) is one-sixth of GDP. G (Government expenditure) is $2000 larger than investment. The country has a trade deficit of $700. What is the country's approximate GDP? $1300 $9100 $7800 $6500arrow_forwardquestion:What is the equilibrium level of GDP in 2017?(millions of dollars)what is the trade balance?millions of dollarsarrow_forward
- Suppose the country of Lilliput exported $145 billion$145 billion worth of goods and imported $423 billion$423 billion worth of goods in the last calendar year. Calculate Lilliput's net exports. $$ billionbillion Lilliput is running neither a trade deficit nor a trade surplus. a trade surplus. a trade deficit.arrow_forwardExplain the BOP deficit shortly? When a nation is suffering a BOP deficit, what does it need to cover that deficit? Explain.arrow_forwardWhy is the bilateral trade deficit between 2 countries a bad measure of whether those countries treat each other fairly? Give an example, for instance trade between Japan and Saudi Arabiaarrow_forward
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