Question

Over the last 25 years, according to the United States balance of payments there is no...

Over the last 25 years, according to the United States balance of payments

there is no clear relationship between the current account balance and the capital and financial account balance.

the current account and the capital and financial account balances tend to move in the same direction.

the current account and the capital and financial account balances tend to move in opposite directions.

the official settlements balance fluctuates greatly from year to year.

Potential GDP is the

the long-run sustainable maximum amount of production.

value of production when the economy is in a recession.

value of production when the economy is at a peak.

current value of production in the economy.

Gross domestic product is the total ________ produced within a country in a given time period.

market value of all goods and services

market value of all final and intermediate goods and services

market value of all final goods and services

amount of final and intermediate goods and services

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Answer #1

a) "C"

the current account and capital and financial account tend to move in the opposite direction. The current account deficits are generally manged by the capital account surplus.

b) "A"

the potential output is the value of the long run sustainable maximum amount of production.

c) "C"

GDP is the total value of all the final goods and services produced within the country in a given period of time.

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