Principles of Macroeconomics, Loose-Leaf Version
Principles of Macroeconomics, Loose-Leaf Version
8th Edition
ISBN: 9781337096881
Author: Mankiw, N. Gregory
Publisher: South-Western College Pub
Question
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Chapter 18, Problem 1CQQ

Sub part (a):

To determine

Whether the volume of export and import are increased or decreased after 1950.

Sub part (a):

Expert Solution
Check Mark

Explanation of Solution

While comparing the US economy today to that of 1950, as a percentage of GDP, the volume of export and import seem to be increased. The economic situation is very different before and after 1950. Now, the volume of international trade is very higher and population of the economy has also increased. So, after 1950, both the export and import have become higher. Thus, option “a” is correct.

Economics Concept Introduction

Concept introduction:

Export: Export refers to trading of goods and services from one country to another country.

Import: It refers to goods and services that are bought domestically and they are produced in other countries.

Sub part (b):

To determine

Whether the volume of export and import are increased or decreased after 1950.

Sub part (b):

Expert Solution
Check Mark

Explanation of Solution

After 1950, as a percentage of GDP, the volume of international trade has increased. Both the volumes of export and import have become higher. Thus, option “b” is incorrect.

Economics Concept Introduction

Concept introduction:

Export: Export refers to trading of goods and services from one country to another country.

Import: It refers to goods and services that are bought domestically and they are produced in other countries.

Sub part (c):

To determine

Whether the volume of export and import are increased or decreased after 1950.

Sub part (c):

Expert Solution
Check Mark

Explanation of Solution

As per the percentage of GDP, the volume of import has increased after 1950. Thus, option “c” is incorrect.

Economics Concept Introduction

Concept introduction:

Export: Export refers to trading of goods and services from one country to another country.

Import: It refers to goods and services that are bought domestically and they are produced in other countries.

Sub part (d):

To determine

Whether the volume of export and import are increased or decreased after 1950.

Sub part (d):

Expert Solution
Check Mark

Explanation of Solution

Comparing the export after and before 1950, it shows an increment in its volume. After 1950, more trade favorable policies have come into force which helps to increase the volume of export in the economy. Thus, option “d” is incorrect.

Economics Concept Introduction

Concept introduction:

Export: Export refers to trading of goods and services from one country to another country.

Import: It refers to goods and services that are bought domestically and they are produced in other countries.

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