Countries gain from
A) trading goods and assets with each other.
B) inflation.
C) long-run tradeoffs between aggregate output and inflation.
D) taxes.
E) productivity slowdown.

Question

Quizplus · Accepted Answer

When countries trade goods and assets with one another, they benefit from access to a wider variety of goods and services at lower prices. This allows for increased specialization and efficiency in production, leading to higher overall levels of economic growth and prosperity. While taxes can play a role in generating revenue for governments and promoting certain economic behaviors, they are not necessarily a direct benefit to the economy as a whole. Inflation and productivity slowdowns can both be damaging to economic growth and stability in the long run, while the tradeoff between aggregate output and inflation is a complex issue that varies depending on specific economic circumstances.

Countries Gain from