"current account deficit" - Economics Help

Prospects for US Economy in 2010

18 November 20178 December 2009 by Tejvan Pettinger

This graph illustrates the difference between actual GDP and potential GDP. It also indicates how much Real GDP growth has lagged behind potential growth. This means the US economy currently has substantial spare capacity. This is reflected by a rise in unemployment and factories operating below full capacity. The Real potential GDP illustrates the long …

Testing Marshall Lerner Condition

20 November 20188 January 2008 by Tejvan Pettinger

Readers Question: When my class and I try to test the Marshall-Lerner condition it doesn’t always work. i.e. we assumed a country with just one export and one import and assumed their price elasticities added up to less than one. We gave each a price and quantity that led to a current account balance =0 …