"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:

Aquatic Food Chains

The hierarchical sequence of organisms each dependent on the next as a source of food in an aquatic environment.

Diatoms

Diatoms are a major group of algae, characterized by their unique cell walls composed of biogenic silica.

Paramecium

A single-celled freshwater organism belonging to the kingdom Protista, characterized by its oval shape and the presence of cilia for movement and feeding.

Ciliates

A group of protozoans characterized by the presence of hair-like structures called cilia, which they use for movement and feeding.