In this topic you will learn to:

​Examine economic issues
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• discuss the effect of a continued current account deficit on an economy

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Apply economic skills

• identify and analyse problems facing contemporary and hypothetical economies

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You will learn about:

External Stability
• measurement
– Current Account Deficit (CAD) as a percentage of Gross Domestic Product
– net foreign debt as a percentage of Gross Domestic Product
– net foreign liabilities as a percentage of Gross Domestic Product
– terms of trade
– exchange rate
– international competitiveness
• trends
• positive and negative causes and effects