If a Country Has a Current Account Deficit, It Must

question 246

Multiple Choice

If a country has a current account deficit, it must have a:

• A) financial account surplus.
• B) balance of payment surplus.
• C) financial account deficit.
• D) balance of payments deficit.

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Definitions:

Cyclical Unemployment

This type of unemployment occurs due to economic downturns or recessions, reflecting a lack of demand for goods and services in the market.

Frictional Unemployment

Unemployment that occurs when workers are between jobs or are entering the workforce for the first time; it is often seen as a natural and necessary part of a healthy economy.

Seasonal Unemployment

This refers to the phenomenon where individuals temporarily lose their jobs due to changes in the season, common in industries like agriculture or tourism.

Nominal Wage

Nominal wage is the amount of money that an employee receives from an employer as payment for work, without adjusting for inflation.