An Unfavorable Balance of Trade Occurs When

question 54

Multiple Choice

An unfavorable balance of trade occurs when:

• A) exports equal imports.
• B) the balance of payments balances.
• C) the current and capital account in the BOP are equal.
• D) the value of the exports of goods exceeds the value of the imports of goods.
• E) the value of the exports of goods is less than the value of the imports of goods .

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Definitions:

Population

The total number of people living in a specific area or country at a certain time.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of all goods and services produced within a country in a given year, reflecting the actual purchasing power.

Inflation

The uplift in the aggregate price level for goods and services, reducing the efficacy of buying power.

Real GDP

Gross Domestic Product adjusted for inflation, which provides a more accurate depiction of an economy's size and how it's growing over time.