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Question Description


Question 1:

Write a brief paragraph describing how the world price level can shift from P0 to P1 in an economy.


Question 2:

What will the trade balance be after the world price level moves to P1 ? Write in a brief paragraph what is causing the trade balance position.


Question 3:

Over time what is likely to happen to the world price level and the trade balance? Write a brief paragraph describing what is causing this movement.


Question 4:

What can prevent the world price level from moving in the way you described in question (3)? Write a brief paragraph describing the mechanics of how the world price level is prevented from moving in the way you described in question (3).

8/7/2020
Quiz: Test #4 Written Portion
Test #4 Written Portion
Started: Aug 7 at 6:35pm
Quiz Instructions
Question 1
22.5 pts
Utilize the following graph to answer the following questions:
Question 1:
Write a brief paragraph describing how the world price level can shift from P0 to P1 in
an economy.
Question 2:
What will the trade balance be after the world price level moves to P1 ? Write in a
brief paragraph what is causing the trade balance position.
Question 3:
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1/3

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