Is it desirable for an economy to have a current account surplus?

Question 1

What is a current account surplus?

Answer 1

If the value of inflows is greater than the value of outflows

Question 2

What effect does a current account surplus have on employment and output?

Answer 2

Increase output and employment

Question 3

What must it mean a country has if it has a current account surplus?

Answer 3

It also has a financial account deficit

Question 4

What is the impact on standard of living from a current account surplus?

Answer 4

Standard of living worse in SR (because not consuming all of income)
Standard of living better in LR (because you get investment income, dividends, interest flowing back(

Question 5

What is the impact on standard of living from a current account deficit?

Answer 5

Standard of living increase in SR (because consuming everything earnt)
Standard of living decreases in LR (Because must pay back debts with interest)