Author Question: If the balance of the current account in the United States is -900 billion, which of the following ... (Read 92 times)

EY67 · **on:** Jun 29, 2018

If the balance of the current account in the United States is -900 billion, which of the following is most likely to be true?

A) The balance on the financial account is positive. B) Net foreign investment is positive.
C) The trade balance is positive. D) The balance on the capital account is negative.

Question 2

Refer to Figure 23-2. Suppose that the level of GDP associated with point N is potential GDP. If the U.S. economy is currently at point K,

A) firms are operating above capacity.
B) the economy is in recession.
C) the level of unemployment is equal to the natural rate.
D) the economy is at full employment.