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Given That Two Countries (A and B) Each Specialize in the Production

question 62

Multiple Choice

Given that two countries (A and B) each specialize in the production of one good and voluntarily trade it for the other country's good, then:


Definitions:

Unemployment

The situation when individuals who are actively seeking work are unable to find employment.

Sacrifice Ratio

The cost of reducing inflation in terms of the amount of output or gross domestic product that is foregone.

Inflation

The tempo at which the comprehensive price tags for goods and services grow, depleting the shopping power.

Unemployment

The situation when individuals who are capable of working and are actively seeking a job are unable to find employment.

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