Practise interpreting terms-of-trade index changes and judging likely effects on export prices, living standards and the balance of trade.
The table shows Afghanistan's terms of trade between 2015 and 2017(2000=100).
Ceteris paribus, which one of the following can be deduced from the data?
The value of Afghanistan’s imports have risen relative to the value of its exports
The average price of Afghanistan’s exports have fallen relative to the average price of its imports
Afghanistan is likely to experience an improvement in its living standards
Afghanistan is likely to experience a deterioration in the financial account of the balance of payments