The deteriorating-terms-of-trade-argument is based on an assumption that the value of ____ will fall over time
a. labor inputs
b. capital inputs
c. technology
d. manufactured goods
e. primary products
e
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When there are sustained increases in real GDP over time, we say that the economy is undergoing:
A. economic stagnation. B. a recession. C. economic growth. D. massive changes in productive capacity.
Describe the events “Squaring the Economic Circle” and explain how they illustrate the multiplier.
What will be an ideal response?
Real business cycle theory assumes complete price and wage flexibility.
Answer the following statement true (T) or false (F)
If the price in Canada was C$50 and the price in Switzerland was SFr 100, absolute purchasing power parity would indicate that:
a. The nominal value of the Swiss franc should rise by 100%. b. The nominal exchange rate should be equal to C$2/SFr. c. The nominal value of the Canadian dollar should rise by 100%. d. The nominal exchange rate should be equal to C$0.50/SFr. e. None of the above.