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Is Russia now better off?

QUESTION 1 1. Let’s assume that before international trade opens up, Russia is at a point on its production possibility curve (PPC) where it produces 40 apples and 40 computers. Once trade opens up, the price of a computer becomes two apples. In response, Russia moves...

What is price-wage rigidity?

Classical economists belief that prices and quantities adjust to the changes in the forces of supply and demand and that the economy produces its potential output in the long run. On the contrary, Keynesian economists believe because of price and wage rigidities the...