Principles of Macroeconomics / Unit 7 MAC 0610 short lesson, about 20 seconds
The Trade Balance Is Macroeconomic
Captions available
The idea
The trade balance is set by saving and investment across the whole economy, not by how well particular industries compete and not by trade policy.
In practice
A tariff can change which goods are traded without changing the balance.
Where people slip
This is the unit's hardest idea, and unit seventeen returns to it when trade policy is argued about directly.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Builds on
Unlocks
- Nothing yet depends on this.
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