if a country is running a trade deficit some other country should be running a surplus to balance out things. page 214 of economics module exihibit 8 says the entire world is running a trade deficit of 231114 ml usd…how is that possible?? if every1 owes amounts who the hell lent it? the trade balance of all the countries combined should be nil right?
Martians.
also why are government business enterprise profit before taxes not deducted from national income to arrive at personal income?
lol and what should be the logical answer?
I’m with you: it sounds like a zero-sum game.
ok than…and what should be the answer to the second question?
ok…my fault…the exihibit says it usa trade balance not the overall world trade balance…sigh maybe i should sleep now
That’s the answer.
The sum of all surplus and deficit must be equal to 0. It is logical, Supply = Demand
also why are government business enterprise profit before taxes not deducted from national income to arrive at personal income?