๐ Welcome to Economics Adventureland! ๐ Buckle up, dear IBDP economics students, as we dive into the thrilling world of the current account deficit. It's not just numbers and percentages; it's a rollercoaster ride with real-world implications. So grab your metaphorical passport as we travel across various scenarios that might affect your everyday life!
Imagine your piggy bank ๐ท. If you spend more money on toys than you save from your allowance, you have a deficit. Similarly, a country has a current account deficit when its spending (outflows) on foreign goods and services exceeds its earnings (inflows).
Not always! Here's what we need to consider
In 1992, Mexico's deficit was 6.73% of GDP, but by 2016, it was only 2.26%. Why? The economy grew, so the same dollar deficit became a smaller piece of the pie!
Dive deeper and gain exclusive access to premium files of Economics HL. Subscribe now and get closer to that 45 ๐
๐ Welcome to Economics Adventureland! ๐ Buckle up, dear IBDP economics students, as we dive into the thrilling world of the current account deficit. It's not just numbers and percentages; it's a rollercoaster ride with real-world implications. So grab your metaphorical passport as we travel across various scenarios that might affect your everyday life!
Imagine your piggy bank ๐ท. If you spend more money on toys than you save from your allowance, you have a deficit. Similarly, a country has a current account deficit when its spending (outflows) on foreign goods and services exceeds its earnings (inflows).
Not always! Here's what we need to consider
In 1992, Mexico's deficit was 6.73% of GDP, but by 2016, it was only 2.26%. Why? The economy grew, so the same dollar deficit became a smaller piece of the pie!
Dive deeper and gain exclusive access to premium files of Economics HL. Subscribe now and get closer to that 45 ๐
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