Chapter 10: Q. 6 (page 265)

The GDP for the United States is $$18, 036$ billion and its current account balance is $- $ 484$ billion. What percent of GDP is the current account balance?

Short Answer

Expert verified

The current account balance is $2.68$ percent of GDP.

Step by step solution

Step 1. Meaning of current account balance.

The current account of a nation shows the value of trade in goods and services along with the flow of income and aid. Balance in current account means that the nation is recieving the same amount of money it is sending.

Step 2. Percent of GDP is the current account balance.

GDP $= $ 18, 036$ billion

Current account balance $= - $ 484$ billion.

The required percent is,

$(\frac{c u r r e n t a c c o u n t b a l a n c e}{G D P} \times 100) %$

= $= (\frac{484}{18, 036} \times 100) % = (0.0268 \times 100) % = 2.68 %$

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The GDP for the United States is $\(18, 036$ billion and its current account balance is $- \) 484$ billion. What percent of GDP is the current account balance?

Short Answer

Step by step solution

Step 1. Meaning of current account balance.

Step 2. Percent of GDP is the current account balance.

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Most popular questions from this chapter

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The GDP for the United States is \(18,036billion and its current account balance is -\)484billion. What percent of GDP is the current account balance?

Short Answer

Step by step solution

Step 1. Meaning of current account balance.

Step 2. Percent of GDP is the current account balance.

One App. One Place for Learning.

Most popular questions from this chapter

Study anywhere. Anytime. Across all devices.

The GDP for the United States is $\(18, 036$ billion and its current account balance is $- \) 484$ billion. What percent of GDP is the current account balance?