Question

To a macroeconomist, what is a trade deficit synonymous with:

A) Economic Prosperity
B) Budget Surplus
C) Current Account Surplus
D) International Debt

Answer 1

A trade deficit is synonymous with a current account surplus.

Step-by-step explanation:

A trade deficit is synonymous with a current account surplus for a macroeconomist. A current account deficit means that a country is a net borrower from abroad, while a positive current account balance means a country is a net lender to the rest of the world. In the context of trade, if imports exceed exports, it indicates a trade deficit, whereas if exports exceed imports, it indicates a trade surplus.