What Economic Variables Would You Need to Consider in Order

question 12

Essay

What economic variables would you need to consider in order to distinguish between a developing country with a short-term balance of payments problem and one in a debt crisis? Explain what data you would need to look at and why.

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Definitions:

Third Industrial Revolution

The period characterized by the digital revolution and the use of electronics and information technology to automate production.

Law of Diminishing Returns

A principle stating that as one factor of production is increased while others are held constant, there comes a point at which the marginal gain in output begins to decrease.

Long Run

A period in which all factors of production and costs are variable, allowing for complete adjustment to changes.

Commercial Aircraft

Airplanes designed specifically for carrying passengers and/or cargo for commercial airlines.