Suppose that there is an improvement in a country's terms of trade between 2010 and 2011. This improvement means that:
a. it can purchase more imports in 2011, with the same volume of exports as in 2010.
b. it can purchase more exports in 2011, with the same volume of exports as in 2010.
c. it needs to increase its exports in order to purchase the same volume of imports as in 2011.
d. regarding its international trade, it is worse off in 2011 than it was in 2010.
Ans: a. it can purchase more imports in 2011, with the same volume of exports as in 2010.
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When the market for gasoline in Motorland is in equilibrium, the deadweight loss is
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Current thinking on the Phillips curve suggests that it would be best for policy makers to: a. focus on controlling unemployment. b. stimulate permanent shifts in aggregate supply
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