By External Balance, Most Economists Means

question 65

Multiple Choice

By external balance, most economists means,

• A) avoiding excessive imbalances in international payments.
• B) balance between exports and imports.
• C) balance between trade account and service account.
• D) fixed exchange rate.
• E) balance in internal transactions like full employment or stable prices.

---

Definitions:

Wealth of Consumers

The total value of all assets owned by consumers minus any liabilities; it reflects the economic resources available to consumers.

Aggregate Supply Curve

A graphical representation of the relationship between the overall price level and the total output produced by an economy.

Aggregate Demand Curve

A graph showing the relationship between the total demand for goods and services and the overall price level in the economy, all else being equal.

Real GDP

Gross Domestic Product adjusted for inflation, providing a more accurate reflection of an economy’s size and growth rate.