If a regional trading agreement causes products from member countries to replace imports from nonmember countries, then the regional trading agreement will experience:

a. economic gains.
b. trade creation gains.
c. trade diversion losses.
d. trade perversion

Ans: c. trade diversion losses.

Economics

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Describe what the liquidity trap is. Explain how it can be problematic for monetary policymakers

What will be an ideal response?

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Most economists think changes in which type of unemployment affects inflation?

A) frictional unemployment B) cyclical unemployment C) structural unemployment D) natural rate of unemployment

Economics