03-ch12 3国际收支-1--学生.pptVIP

Last class, we discussed: A country’s GNP is equal to the income received by its factors of production. GDP is equal to GNP less net receipts of factor income from abroad, measures the output produced within a country’s territorial borders. In a closed economy, GNP must be consumed, invested, or purchased by the government. In an open economy, GNP equals the sum of consumption, investment, government purchases, and net exports of goods and services. Current account (CA) balance A country’s current account balance equals the change in its net foreign wealth. Saving and the Current Account