A nation experiences overall balance if it achieves
A) neither deficits nor surpluses in its current account, full employment, and price stability.
B) a trade surplus, full employment, and price stability.
C) full employment, price stability, and no change in its money supply.
D) full employment, price stability, and maximum productivity.

Question

Quizplus · Accepted Answer

Overall balance refers to a situation where a country achieves neither deficits nor surpluses in their current account, full employment, and price stability. This means that the country's economy is stable and operating efficiently. Therefore, option (A) is the correct choice. Option (B) is incorrect because trade surplus alone does not guarantee overall balance, and it is possible for a country to have a trade surplus and still experience price instability or unemployment. Option (C) is incorrect because maintaining the money supply alone does not ensure full employment or price stability. Option (D) is incorrect because maximum productivity alone cannot guarantee overall balance, and it is possible to have high productivity levels while experiencing trade imbalances or inflation.

A Nation Experiences Overall Balance If It Achieves