Manufacturers Would Prefer to Produce in a Country with a Trade

question 113

Multiple Choice

Manufacturers would prefer to produce in a country with a trade ________, because it signals a greater opportunity to export products to more markets.

• A)surplus
• B)deficit
• C)discrepancy
• D)bonus
• E)balance

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Definitions:

Active Approach

A strategy involving regular and direct intervention or actions to achieve a particular goal or outcome.

Recessionary Gap

A situation where the real GDP is lower than the potential GDP, indicating underutilized resources in an economy.

Real GDP

A measure of the value of all goods and services produced by an economy over a specific time period, adjusted for inflation.

Expansionary Gap

A situation where the output of an economy exceeds its potential output, typically characterized by high demand and inflation.