Answer:
$50 billion.
Explanation:
Current Account represents the balance of Trade (Imports & Exports) plus net income and direct payments. Countries strive to maintain their current account surplus which is an indicator that the country is producing and exporting more than its consumption and imports. In this case, it is clearly stated that there are no other factors like income or transfers, so we just have to compare exports and imports. The formula for Current Account in this case is:
Exports - Imports
⇒ 150 - 100 = $50 billion.
GOVERNMENT SUBSIDIES are long-term, low-interest loans, cash grants, and tax deductions used to develop and protect companies or special industries.
Government subsidies are assistance given by the government to a person or a group of individuals in support of an enterprise that is for the public interest.
Answer:
A) $4 million
Explanation:
The GDP is woth $4 million because GDP equals the sum of all produced goods and services, in a given year, within a country.
Inventories are part of GDP, counted as private investment, even if they are not sold. The reason for this is that firms payed someone for the inventory with the aim of earning a profit in the future, and assets that are purchased with the goal of getting economic benefit from their use, are qualified as investments.
