-In the economy in the above diagram,international trade:
A) does not occur.
B) has a contractionary effect on GDP.
C) has an expansionary effect on GDP.
D) has no impact on GDP.

Question

-In the economy in the above diagram,international trade:
A) does not occur. 
B) has a contractionary effect on GDP. 
C) has an expansionary effect on GDP. 
D) has no impact on GDP.

Quizplus · Accepted Answer

International trade can have an expansionary effect on GDP by increasing the total output and consumption possibilities through exports and imports.

-In the Economy in the Above Diagram,international Trade