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The standard model of a trading country
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In this section we are covering the standard model of a trading economy were we will be looking at production possibility curves, relative curve and demand. We want to see what happens to production and consumption of two products when the price of one product increases. Basically we want to see does trade benefit countries(two countries in this model) in this standard model. We will also be covering terms of trade and economic growth shown by a shift of the production possibility cover. This mo...
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