Current account and capital account in balance of payments

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(a) Discuss the relationship between the current account and the capital account in the balance of payments.

(b) Explain how nondiscretionary or automatic stabilizers work during recession and inflation.

(c) Explain why the aggregate demand curve is downward sloping.

(d) Explain TWO (2) merits and TWO (2) demerits of gross domestic product as a measure of economy performance and standard of living.

Reference no: EM132606304

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