What does a current account deficit do that is positive for a nation?

What will be an ideal response?


The deficit enables more investment in the economy and investment increases living standards. Capital inflows, in general, indicate foreign confidence in the domestic economy.

Economics

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Economic growth will be associated with a constant price level when

A) the increase in aggregate demand is accompanied by a reduction in short-run aggregate supply. B) the increase in aggregate demand is less than the increase in long-run aggregate supply. C) the increase in aggregate demand exactly equals the increase in long-run aggregate supply. D) the increase in aggregate demand is more than the increase in long-run aggregate supply.

Economics

Refer to the figure below. When the market is unregulated, producer surplus is represented by the area:

A. ABC B. FHC C. DGF D. DBC

Economics

What perspective do economists use to evaluate the issue of the amount of pollution control?

Please provide the best answer for the statement.

Economics

A country has an absolute advantage over another in the production of widgets if it can produce

A. widgets using smaller quantities of resources than can the other country. B. more widgets than can the other country. C. widgets more efficiently than can the other country. D. widgets at a lower opportunity cost than can the other country.

Economics