CAD is the difference between exports and imports for a country. Calculated as Trade Gap + Net Current Transfers + Net Income Abroad. US deficit fell from $2.776 trillion to $1.375 trillion in 2022
Model explains long-term economic growth without considering business cycles. Assumes no government sector, foreign trade, or constant population growth. Output determined by capital-to-labor ratio using Cobb-Douglas function. Steady state occurs when saving equals investment