Macroeconomists position on trade deficits

Reference no: EM1311114

1.The public tends to view trade deficits with alarm while macoreconomics claims that trade deficits can actually be helpful for an economy. Explain the macroeconomists position on trade defilicts

2.Suppose an economy has overbuilt and suffers from excess capacity. A recession ensues due to firms cutting back on expenditures. Is deficient demand more easily remedied by monetary or fiscal policy for this economy ? Explain

Reference no: EM1311114

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