Q6: Below is the quadrant of sectoral balances GB<0 GB>0 Switzerland Sweden. 15 DPB > 0 GB = -(DPB + FB) 10 Netherlands • Germany Japan Belgium Austria 5 UK France ⚫US Finland .. •Poland Italy FB > O CAB <0 Denmark Hungary Korea O 5 10 • Greece • Portugal 15 Australia⚫ • Spain -15 Norway -10 -5 -5 New Zealand -10 -15 1) Name the golden states in the above quadrant. 2) Why is the status of the golden states hard to achieve? Why not every country can be a golden state if they try hard enough? 3) Describe the balances of the three sectors in the United Kingdom. 4) Why are, for instance, Norway, Korea, New Zealand, Australia, Portugal, Greece, and Spain in an unsustainable position? 5) Name the countries with the twin deficits in the above quadrant.

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