A positive current account balance (surplus) contributes directly to increasing the measure of GDP.

Question

Quizplus · Accepted Answer

A positive current account balance means that a country is exporting more goods and services than it is importing. This leads to an increase in the country's GDP as the value of exports is included in the GDP calculation. Therefore, a surplus in the current account has a positive impact on the GDP measure.

A Positive Current Account Balance (Surplus) Contributes Directly to Increasing