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In a Two-Good,two-Period Model with Trade,a Negative Total Factor Productivity

Question 42

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In a two-good,two-period model with trade,a negative total factor productivity shock abroad


A) increases foreign output and increases domestic output.
B) decreases foreign output and decreases domestic output.
C) increases foreign output and decreases domestic output.
D) decreases foreign output and increases domestic output.
E) decreases foreign output and leaves domestic output unchanged.

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