"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.

---

Definitions:

Colloid Osmotic Pressure

The pressure exerted by proteins, mainly albumin, in a blood vessel's plasma that tends to pull water into the circulatory system.

Ascending Limb

Part of the loop of Henle in the kidney nephron that transports filtrate from the renal medulla back towards the cortex, important for the reabsorption of water and salts.

Loop of Henle

A section of the nephron in the kidney that is responsible for concentrating urine and conserving water.

Cotransported

Referring to the simultaneous transportation of two or more molecules across a cell membrane, usually by a specific carrier protein.