"Sharp Contractions in a Country's Output and Employment Invariably Result

question 5

Essay

"Sharp contractions in a country's output and employment invariably result from a crisis in which the country suddenly loses access to all foreign sources of funds." Explain how the current account identity necessitates these contractions.

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Definitions:

Plain English

Writing or speaking in clear, straightforward language devoid of complex vocabulary or jargon, making it easily understandable.

Clichés

Overused expressions or ideas that have lost their originality or impact due to excessive use.

Grammatical Errors

Grammatical errors are mistakes in the use of a language's grammar, such as incorrect verb tenses, misuse of prepositions, and subject-verb agreement errors.

Usage Errors

Mistakes made in the application or understanding of a language's rules, typically in grammar, syntax, or vocabulary.