Imports, Exports, & Exchange Rates
A good sold to another country
Export
What is the invisible hand?
This idea explains how individual self-interest can lead to socially optimal outcomes in markets.
What are positive net exports (or a trade surplus)?
When a country’s exports exceed its imports.
What is the difference in views on government intervention between Keynesian and new classical economics?
One school supports active government intervention through fiscal policy, while the other argues government intervention is unnecessary because markets self-correct.
Which country has the highest trade deficit and highest trade surplus?
1) China Highest trade surplus
2) United States Highest Trade Deficit
Which economic approach supports using fiscal policy to stabilize the economy?
Keynesian economics?