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Taking help of a PHP designer to have a wonderful website for use
Posted On : Dec-18-2011 | seen (116) times | Article Word Count : 529 |

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The U.S. produces roughly one-third of the world's output with less than 5% of the world's population. U.S. GDP will be about $12.5 trillion in 2005. Moreover Nike Air Force 1 Mens Sale , over the next 10 years, the U.S. will produce roughly $145 trillion worth of goods & services. Yet, the U.S. consumes more than it produces through current account deficits. In 2005, the U.S. will consume over $600 billion more than it will produce.


Current account deficits are offset by capital account surpluses (to keep the balance of payments balanced). The U.S. will export over $1.2 trillion of output Nike Air Force 1 Womens Sale , to the rest of the world, while the U.S. will import over $1.8 trillion of output, from the rest of the world. The over $600 billion deficit is offset by U.S. net capital inflows by our trading partners, or net foreign investment in the U.S.


The NeoKeynesian Consumption Function is Y = C + I + G + NX (or C = Y - I - G - NX); where Y is output Nike Air Force 1 Shoes Sale , C is consumption, I is investment, G is government, and NX is net exports. The U.S. economy has been able to expand with large negative net exports Nike Air Force 1 Sale , while U.S. trading partners need export-led growth to expand their economies. Consequently, the U.S. economy is relatively stronger than the rest of the world's economies.


One reason for the massive U.S. current account deficits is the differences in economic policies between the U.S. and its trading partners. For example, in Germany, full employment is maintained through wage rigidies and labor immobility (e.g. union contracts) http://www.airforceonesforsale.com/ , and in Japan, . Wholesale Nike Shoes China