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International Trade Theory
The Ricardian Model
24 other sections not shown
AA curve analysis balance of payments Balance Sheet beneﬁts central bank comparative advantage consumption costs current account deﬁcit depreciation developing countries diagram Discuss dollar economies of scale effect equal equilibrium euro Eurocurrency expected export external balance factors of production ﬁgure ﬁiture ﬁnancial ﬁnd ﬁrms ﬁrst ﬁscal expansion ﬁxed exchange rate ﬂoating exchange rate ﬂows foreign exchange market free trade gains from trade gold standard graph growth Home important income increase indifference curve industry inﬂation rate international trade intervention investment labor long-run macroeconomic manufacturing market failure monetary policy money demand money supply nominal interest rate Odd-Numbered Textbook Problems ofthe output percent permanent price level price of cheese production possibilities frontier purchasing power parity quota real balances real exchange rate real interest rate reﬂect relative price Review Questions rise schedule sector seigniorage short run strategic trade policy subsidy tariff terms of trade United wage welfare wine workers