In a Two-Good,two-Period Model with Trade,a Negative Total Factor Productivity

question 42

Multiple Choice

In a two-good,two-period model with trade,a negative total factor productivity shock abroad

• A) increases foreign output and increases domestic output.
• B) decreases foreign output and decreases domestic output.
• C) increases foreign output and decreases domestic output.
• D) decreases foreign output and increases domestic output.
• E) decreases foreign output and leaves domestic output unchanged.

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Definitions:

Associate Sickness

The process by which individuals link certain stimuli or experiences with feeling ill.

Tastes

Preferences or perceptions of flavor experienced through the sense of taste.

Reinforcement

In behavioral psychology, it is a consequence that will strengthen an organism's future behavior whenever that behavior is preceded by a specific antecedent stimulus.

Weakens

To reduce the strength, effectiveness, or power of something or someone.