Learning objectives
Describe the components of the current account: trade in goods, trade in services, primary income and secondary income
Calculate the balance of trade in goods, in services, in goods and services, and the current account balance, including as a percentage of GDP
Explain current account deficits and surpluses and their causes, such as the exchange rate, relative inflation, productivity and strong domestic demand
Analyse the consequences of current account imbalances for the domestic economy and for its trading partners
(A Level) Describe the financial and capital accounts and explain how they finance a current account deficit
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