Evaluate the Statement That "For an Open Economy the Equilibrium

question 36

Essay

Evaluate the statement that "for an open economy the equilibrium GDP always corresponds with an equality of exports and imports."

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Definitions:

Goodwill

An intangible asset that arises when a buyer acquires an existing business, representing the premium paid over the fair value of the net identifiable assets of the business.

Par Value

The nominal or face value of a stock or bond as stated by the issuing company, which may differ from its market value.

Acquisition

The process or act of acquiring or purchasing another company or asset.

Additional Paid-In Capital

Refers to the amount of money paid by investors for shares in a company above the par value of the shares.