For purposes of macroeconomic analysis,a country is small when:
A) its population is less than 20 million.
B) it is a price taker in world markets for its exports and imports.
C) its macroeconomic imbalances have no significant effect on other countries.
D) its domestic economy is not significantly influenced by international trade and financial flows.

Question

Quizplus · Accepted Answer

A country is considered small in macroeconomic terms if it is a price taker in world markets, meaning it cannot influence international prices with its trade activities.

For Purposes of Macroeconomic Analysis,a Country Is Small When