Question

Suppose the country of Lilliput exported $205 billion worth of goods and imported $449 billion worth of goods in the last calendar year. Calculate Lilliput's net exports. $ billion Lilliput is running a trade surplus. neither a trade deficit nor a trade surplus. a trade deficit.

Answer 1

Lilliput's net exports are ($244 billion).  Therefore, Lilliput is running a trade deficit of $244 billion.

A trade surplus implies that Lilliput's exports are greater in value than its imports. A situation of "neither a trade deficit nor a trade surplus" exists when the exports are equal in value to the country's imports.

Data and Calculations:

Lilliput's exports = $205 billion

Lilliput's imports = $449 billion

Net exports for Lilliput = ($244 billion)

Thus, Lilliput is running a trade deficit of $244 billion because its imports are worth more than its exports.

Learn more: brainly.com/question/25520478