Refer to Table 2.4. The GDP deflator for 2012 is

Refer to the figure above. Which of the following best describes a method to compensate the group that was made worse off when Barylia opened to free trade?

A) The buyers could be taxed and the tax revenue could be used to compensate the sellers. B) The sellers could be taxed and the tax revenue could be used to compensate the buyers. C) Barylia could sell the calculators at a price below the domestic equilibrium price in the global market. D) Barylia could sell the calculators at a price above the world price in the global market.

Unilateral transfers between countries are

A) long-term loans. B) only international gifts, never payments that do not correspond to the purchase of any good, service, or asset. C) part of the current account but not a part of national income. D) known for reducing the income of capital owners. E) the difference between Y and GNP if the identity Y = C + I + G + CA holds exactly.