A Country Exporting More Than It Imports Runs A

question 28

Multiple Choice

A country exporting more than it imports runs a:

• A)Trade surplus
• B)Trade deficit
• C)Balance of trade
• D)Embargo

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Definitions:

Short-run Phillips Curve

The short-run Phillips Curve represents the inverse relationship between inflation and unemployment in an economy over a short-term period.

Unemployment

The situation when individuals who are capable of working are not able to find a job despite actively seeking work.

Sacrifice Ratio

The measure of economic costs associated with reducing inflation through monetary policies, typically represented as the loss in output per percentage point decrease in inflation.

Inflation Expectations

The rate at which consumers, businesses, and investors expect prices to rise in the future.