During a year, the export price index of a country rises from $100$ to $112$, while the import price index rises from $100$ to $105$. Calculate the percentage change in the country's terms of trade over the year and state whether the terms of trade have improved or deteriorated.

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Improved by approximately 6.7 %

Gce Model Questions Vol1 2021 Economics Question 9

During a year, the export price index of a country rises from \(100\) to \(112\), while the import price index rises from \(100\) to \(105\). Calculate the percentage change in the country's terms of trade over the year and state whether the terms of trade have improved or deteriorated.

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