If a country's exports exceed its imports of goods and services, the country has
Correct answer: A. A trade surplus
- A. A trade surplus
- B. A fiscal surplus
- C. A capital account deficit
- D. A primary income deficit
Explanation
A trade surplus occurs when the value of exports of goods and services is greater than the value of imports. A fiscal surplus concerns the government budget, not international transactions.
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About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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