(Advanced analysis)Answer the question on the basis of the following information for a private open economy.The letters Y,C,I_g,X,and M stand for GDP,consumption,gross investment,exports,and imports respectively.Figures are in billions of dollars. $\begin{array} { l } C = 40 + 0.8 Y \ t _ { g } = \overline { I _ { g } } = 40 \ X = \bar { X } = 20 \ M = \bar { M } = 30 \end{array}$ Refer to the information.This nation is incurring: A) a trade surplus. B) balance in its international trade. C) a trade deficit. D) unemployment.

Question

Quizplus · Accepted Answer

To determine whether this nation is incurring a trade surplus or a deficit, we need to compare its exports and imports. From the given information, we know that X (exports) is $800 billion, while M (imports) is $900 billion.
X - M = $800 billion - $900 billion = -$100 billion
Since the value of X - M is negative, the nation is incurring a trade deficit. Therefore, the correct answer is C. There is no information provided to determine whether the nation is facing unemployment or not.

(Advanced Analysis)Answer the Question on the Basis of the Following C=40+0.8Ytg=Ig‾=40X=Xˉ=20M=Mˉ=30\begin{array} { l } C = 40 + 0.8 Y \\t _ { g } = \overline { I _ { g } } = 40 \\X = \bar { X } = 20 \\M = \bar { M } = 30\end{array}C=40+0.8Ytg​=Ig​​=40X=Xˉ=20M=Mˉ=30​

(Advanced Analysis)Answer the Question on the Basis of the Following $\begin{array} { l } C = 40 + 0.8 Y \\t _ { g } = \overline { I _ { g } } = 40 \\X = \bar { X } = 20 \\M = \bar { M } = 30\end{array}$