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The following activity deals with the relationship between the terms of trade, GDP and GNI. Which 3 of the following statements are correct?The only difference
The following activity deals with the relationship between the terms of trade, GDP and GNI. Which 3 of the following statements are correct?The only difference between real GDP and real GNI is due to net primary income to the rest of the worldIf the price of exports increases but the volume of exports stays the same real GDP will decrease.If the terms of trade increases by 11% it implies that real GDP tends to overestimate economic growth.Relative movements in export and import prices are captured in the terms of trade.When real GNI is estimated adjustments for the terms of trade is made.If the terms of trade decreases by 8% it implies that the country can afford less imports for a given level of exports and the country is relatively worse off
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