This quantity is predicted to improve after currency depreciation in the Marshall–Lerner condition. For 10 points each:
[10m] Name this quantity often abbreviated as “X minus M.” This quantity is added to consumption, investment, and government spending to calculate a country’s GDP.
ANSWER: balance of trade [or trade balance; or net trade or net exports or nx; accept exports minus imports; prompt on trade; reject “exports” or “imports”]
[10e] This nationalist economic policy, which was prevalent in 17th-century Europe, tries to maximize exports while minimizing imports.
ANSWER: mercantilism [or mercantilist policy]
[10h] This curve represents how the balance of trade changes over time following a currency devaluation, making its imports more expensive.
ANSWER: J curve
<Claremont, Social Science>