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Which of the following statements regarding the heckscher-ohlin model and Ricardian trade theory is TRUE?
a. Both the Heckscher-Ohlin and Ricardian models are current, relevant, and applicable in explaining world trade patterns
b. The Ricardian model is an excellent simplified introduction to world trade patterns, but the Heckscher-Ohlin model is more relevant in regards to explaining empirical evidence
c. The Ricardian model is useless in explaining trade patterns, and the H-O theory, though applicable, is not sufficient for explaining real world trade patterns
d. The Ricardian model is extremely useful in analyzing trade patterns, but the H-O model is only useful in theoretical applications.
Inflation (RPI) - another imperative channel. Oil is a necessity for the UK, and is price inelastic therefore one can analyse the correlation between a price shock and inflation. I
Inflation in Sweden Figure Inflation in Sweden 1830 - 2010. Source: SCB. There are four aspects which are interesting when we look at inflation data for Sweden
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