Calculate commodity terms of trade and income terms of trade


Problem: You have the following information for a country for 2005, with all price indexes utilizing 1995 as the base year: The export price index is 120, the import price index is 130, the quantity index of exports is 115, and the quantity index of imports is 100. Calculate the commodity terms of trade and the income terms of trade for this country for 2005. Interpret your results.

Solution Preview :

Prepared by a verified Expert
Microeconomics: Calculate commodity terms of trade and income terms of trade
Reference No:- TGS01745244

Now Priced at $20 (50% Discount)

Recommended (92%)

Rated (4.4/5)