Russia is exporting mostly commodities. Below find Russia's terms of trade (TOT) during 2012-2019. Russia import/GDP...

 

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Russia is exporting mostly commodities. Below find Russia's terms of trade (TOT) during 2012-2019. Russia import/GDP at constant national prices is 0.2 1. What explains the deterioration of Russia's terms of trade from 203 in 2012, to 113 in 2016. 2. Real GDP at Constant National Prices stayed constant during 2012-2016, at level G, [see the chart below]. Calculate the income effect associated with Russia's TOT deterioration from 2012 to 2016, as a fraction of Russian GDP Russia: Terms of trade, price of exports/imports, base year = 2000, 203.1 2012 189.6 2013 182.1 2014 138.5 2015 112.9 2016 127.7 2017 149.7 2018 151.4 2019 Russia's real GDP at Constant National Prices 2012-2016 changes were small FRED Real GDP at Constant National Prices for Russian Federation Millions of 2017 U.S. Dollars 3,920,000 3,880,000 3,840,000 3,800,000 3,760,000 3,720,000 3,680,000 3,640,000 2013 2014 Sources: University of Groningen; University of California, Davis 2015 fred.stlouisfed.org 2016 Russia is exporting mostly commodities. Below find Russia's terms of trade (TOT) during 2012-2019. Russia import/GDP at constant national prices is 0.2 1. What explains the deterioration of Russia's terms of trade from 203 in 2012, to 113 in 2016. 2. Real GDP at Constant National Prices stayed constant during 2012-2016, at level G, [see the chart below]. Calculate the income effect associated with Russia's TOT deterioration from 2012 to 2016, as a fraction of Russian GDP Russia: Terms of trade, price of exports/imports, base year = 2000, 203.1 2012 189.6 2013 182.1 2014 138.5 2015 112.9 2016 127.7 2017 149.7 2018 151.4 2019 Russia's real GDP at Constant National Prices 2012-2016 changes were small FRED Real GDP at Constant National Prices for Russian Federation Millions of 2017 U.S. Dollars 3,920,000 3,880,000 3,840,000 3,800,000 3,760,000 3,720,000 3,680,000 3,640,000 2013 2014 Sources: University of Groningen; University of California, Davis 2015 fred.stlouisfed.org 2016