Evaluate the Statement That "For an Open Economy the Equilibrium

question 36

Essay

Evaluate the statement that "for an open economy the equilibrium GDP always corresponds with an equality of exports and imports."

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Definitions:

Earnings Per Share

A measure of a company's profitability that is calculated by dividing its net earnings available to common shareholders by the average outstanding shares.

Common Stock

Represents equity ownership in a corporation, providing voting rights and entitling the holder to a share of the company's success through dividends and/or capital appreciation.

Fixed Asset Turnover

A financial ratio that measures a company's effectiveness in generating sales from its fixed assets.

Net Income

The amount of a company’s profit after all expenses, taxes, and costs have been subtracted from total revenue.