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Country a Has Higher Productivity in Traded Goods Production Than

Question 36

Multiple Choice

Country A has higher productivity in traded goods production than country B. The difference between country A's and country B's overall price levels will widen as the share of:


A) nontraded goods in country A's consumption falls.
B) traded goods in country A's consumption rises.
C) nontraded goods in country A's consumption rises.
D) nontraded goods in country B's consumption falls.

Correct Answer:

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