How Is the Balance Ensured in a Balance-Of-Payments Record? What

question 39

Essay

How is the balance ensured in a balance-of-payments record? What does a balanced record signify?

---

Definitions:

Long Run

In economics, the Long Run is a period during which all factors of production and costs are variable, allowing for full industry adjustment to changes.

Per-worker Production Function

A mathematical representation showing how the amount of output produced per worker varies with the amount of capital or other inputs used per worker.

Quantity of Capital

The total assets, both physical (such as machinery and buildings) and financial, that individuals or businesses use to produce goods and services.

Outward Rotation

An expansion of the production possibilities frontier, indicating an economy's increased capacity to produce goods and services.