Examlex
Determine the impact of an increase in total factor productivity on domestic aggregate output, absorption, the
current account surplus, the nominal exchange rate, and the price level. Assume a flexible exchange rate and
flexible prices.
Opportunity Cost
The omission of possible gains that could come from different options when one is preferred.
Comparative Advantage
The competence of an individual, firm, or nation to forge a good or render a service with a lower forfeited opportunity compared to others in the market.
Productivity
A measure of the efficiency of production, usually defined as the ratio of outputs produced to inputs used.
Opportunity Costs
The cost of foregoing the next best alternative when making a decision or choosing one option over another.
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