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Developing countries

Developing countries are often concerned that their terms of trade might deteriorate as economic growth occurs. In terms of the analysis of production and consumption effects of economic growth, other things equal, what type(s) of growth must occur and what type of country ("large" or "small") must a developing country be in order for the country's terms of trade to deteriorate as the country grows?

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Developing countries are often concerned that their terms of trade might deteriorate as economic growth occurs. In terms of the analysis of production and consumption effects of economic growth, other things equal, what type(s) of growth must occur and what type of country ("large" or "small") must a developing country be in order for the country's terms of trade to deteriorate as the country grows?
Terms of trade are the relative prices of a country's exports to imports. Developing countries are often concerned that their terms of trade might deteriorate as economy growth occurs. The growth that must occur is one in which ...

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Developing countries are discussed in great detail in this solution.

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