According to the Absolute Advantage Principle, National Prosperity Is the Result

question 19

True/False

According to the absolute advantage principle, national prosperity is the result of a positive balance of trade, achieved by maximizing exports and minimizing imports.

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Definitions:

Aggregate Demand

The complete need for every product and service within an economy at a specific overall price level during a certain time frame.

Aggregate Supply

The total supply of goods and services that firms in an economy are willing to sell at a given overall price level in a given time period.

Real GDP

The production of goods and services valued at constant prices.

Credibility

The quality of being trusted and believed in, often based on a reputation for honesty and reliability.