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Ksju [112]
2 years ago
6

Why do economists pay attention to the balance of trade?

Business
1 answer:
Soloha48 [4]2 years ago
3 0

Economists use the BOT to analyze and measure the relative power of a country's economy. Hence, Economists pay special attention to the Balance of Trade.

<h3>Why is a balance of trade vital to the economy?</h3>

The Balance of trade plays a significant role in the calculation of the Gross Domestic Product of a country. As a part of GDP calculations, exports are brought and imports are subtracted from the total.

The more the change surplus, the more the GDP of a country.

Therefore, Economists use the BOT to analyze and measure the relative power of a country's economy. Hence, Economists pay special attention to the Balance of Trade.

Learn more about balance of trade here:

brainly.com/question/780414

#SPJ1

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Projects A and B are mutually exclusive and have an initial cost of $82,000 each. Project A provides cash inflows of $34,000 a y
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