The Overall U.S.balance of Payments

question 46

Multiple Choice

The overall U.S.balance of payments

• A)shows a deficit
• B)shows a surplus
• C)is the merchandise trade balance
• D)equals exports minus imports
• E)shows how deficits in one account are exactly offset by surpluses in other accounts

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Definitions:

Minimum Wage

The lowest legal wage that can be paid to most workers, set by government laws or regulations, intended to ensure a basic standard of living.

Taxes

Compulsory financial charges or levies imposed upon an individual or an organization by a governmental entity to fund various public expenditures.

Real GDP

The measure of the value of economic output adjusted for price changes (inflation or deflation), which reflects the real quantity of goods and services produced.

Stagflation

A situation in economic where slow economic growth and high unemployment occur simultaneously with rising prices (inflation).