An economy records a large surplus on the current account of its balance of payments. It then revalues its currency. In the short run, the current account of the balance of payments shows an even larger surplus. In the long run, this surplus gets smaller and finally turns into a deficit. What is the total of the price elasticities of imports and exports in the short run and in the long run?
Economics 9708 · AS & A Level · Price elasticity of demand