Countries gain from
A) trading goods and assets with each other.
B) inflation.
C) long-run tradeoffs between aggregate output and inflation.
D) taxes.
E) productivity slowdown.

Question

Quizplus · Accepted Answer

Countries benefit from trading goods and assets with each other because it allows for specialization and increased efficiency, leading to a higher overall level of productivity and economic growth. In addition, it allows for access to goods and resources that may not be available domestically, leading to increased consumer welfare.

Countries Gain from