The Principle of Comparative Advantage States That Total Output Is

question 2

Short Answer

The principle of comparative advantage states that total output is greatest when each product is made by the country that has the ____________.

---

Definitions:

Velocity

In economics, the rate at which money circulates in the economy, typically measured as the ratio of gross national product to the total supply of money.

Money Supply

The sum total of available financial assets in an economy at a particular time slot.

Price Level

A general measure of the cost of goods and services within an economy or specific market at a given time.

Real GDP

The total value of all goods and services produced within a country in a year, adjusted for inflation, reflecting the real purchasing power.