If Net Exports Is a Negative Number, the Government Sector

question 378

Multiple Choice

If net exports is a negative number, the government sector must ________ if the private sector is in a ________.

• A) run a surplus; surplus
• B) equal zero; deficit
• C) run a deficit; surplus
• D) The statement errs because the accounts are not related.

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Definitions:

Equilibrium

A state in an economic model where supply equals demand, leading to a stable market condition where prices are unlikely to change.

High Quality

Reflecting a high level of excellence or superior standard in terms of durability, performance, or accuracy.

Low Quality

Describes products or services that do not meet the standard performance expectations or durability.

Equilibrium

A state in a market system where supply equals demand, and no economic forces are acting to change the price or quantity.