The Gravity Equation Uses a Calculation to Predict the Level

Multiple Choice

The gravity equation uses a calculation to predict the level of bilateral trade based directly on ________ and inversely on ________.

A) wages; technology
B) size of the countries' GDP; the geographic distance between the countries
C) the percent of the countries' GDP in manufacturing; their level of tariffs
D) the growth rates of the countries' GDP; their openness to trade