In Econland Exports Equal 15% of Total Output, While Imports

question 97

Multiple Choice

In Econland exports equal 15% of total output, while imports equal 20% of total output. Econland has:

• A) a budget surplus.
• B) a budget deficit.
• C) a trade surplus.
• D) a trade deficit.

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Definitions:

Price Level

Refers to the average of all current prices for goods and services in an economy.

Aggregate Quantity

The total amount, sum, or volume of goods or services produced or supplied in an economy at a given overall price level and time.

Keynesian Analysis

This approach focuses on the total spending in the economy and its effects on output and inflation, as per the theories of economist John Maynard Keynes.

Macroeconomic Equilibrium

A state in which aggregate supply equals aggregate demand, leading to an economy operating at its full capacity.