Do government and trade balances (NX) move in the same direction? In a. opposite directions? Build a graph with these two variables and focus on major trends rather than individual years. 3 2. -1 -2 -3 -4 -5 -6 -7 -8 2009 2010 2011 2012 2013 2014 2015 2005 2006 2007 2008 Government Balance Net Exports

What are the major issues with regard to trade imbalances for low- and middle-income countries?

In what way does comparing a countrys exports to GDP reflect its degree of globalization?

The Czech Republic has 3 GDP of 1,800 billion koruny. The exchange rate is 25 koruny/U.S. dollar. The Czech population is 20 million. What is the GDP per capita of the Czech Republic expressed in U.S. dollars?

Retrieve inflation data from The World Bank data base (http://databank.worldbank.org/data/home.aspx) for India, Spain, and South Africa for 20112015. Prepare a chart that compares India, Spain, and South Africa based on the data. Describe the key differences between the countries. Rank these countries as high-, medium-, and low-income. Explain what is surprising or expected about the data.

What is the difference between trade deficits and balance of trade?

If imports exceed exports, is it a trade deficit or a trade surplus? What about if exports exceed imports?

Imagine that the economy of Germany finds itself in the following situation: the government budget has a surplus of 1 of Germanys GDP; private savings is 20 of GDP; and physical investment is 18 of GDP. Based on the national saving and investment identity, what is the current account balance? If the government budget surplus falls to zero, how will this affect the current account balance?

Some economists warn that the persistent trade deficits and a negative current account balance that the United States has run will be a problem in the long run. Do you agree or not? Explain your answer.

Explain what will happen in a nation that tries to solve a structural unemployment problem using expansionary monetary and fiscal policy. Draw one AD/AS diagram, based on the Keynesian model, for what the nation hopes will happen. Then draw a second AD/AS diagram, based on the neoclassical model, for what is more likely to happen.