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HELP EXPLAIN THIS Suppose a small economy consists of an agricultural good Y and a non-agricultural good X. Assume also that productivity growth over time

HELP EXPLAIN THIS

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Suppose a small economy consists of an agricultural good Y and a non-agricultural good X. Assume also that productivity growth over time is the same in both sectors. (1) Show that when this economy is closed to trade, agriculture's terms of trade decline over time. Explain the important economic "law" that drives this result. (il) If the economy is open to trade, illustrate what happens over time if this country initially has a comparative advantage in producing Y. (ill) If unbiased productivity growth also occurs in the rest of the world, will an exporting country's agricultural terms of trade eventually decline over time? (iv) Based on the empirical evidence, describe what has happened to agriculture's global terms of trade over the past 100 years. Have the agricultural terms of trade for developed countries typically followed the same pattern over this period? If not, explain why. (v) Why was there a spike in real food prices over the decade of the 2000s? Carefully explain how the policy choices of exporters of commodities such as rice exacerbated those price spikes? How did some exporting countries respond to the onset of the pandemic in early-2020

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