This preview shows page 1. Sign up to view the full content.
Unformatted text preview: Short Answer : GDP deflator question : Part (a) 90 Part (b) Comparative advantage question : Part (b) US has absolute advantage in the production of both goods; neither has the comparative advantage in corn. Part (c) No, the countries should not trade trade is beneficial only when each country has a comparative advantage. Demand question : the only one that is movement along the curve is a change in price the rest are all shift factors....
View Full Document
This note was uploaded on 01/29/2012 for the course ECON 2b03 taught by Professor N.a during the Spring '11 term at McMaster University.
- Spring '11