Paul Krugman has stated that international trade is really about geography

The real balances effect occurs because a higher price level will reduce the real value of people's:

a. financial assets. b. wages. c. unpaid debt. d. physical investments.

Which of the following is an example of a normative statement?

A. Higher prices cause consumers to buy less. B. There should be no unemployment in an advanced industrial society. C. Equilibrium price implies that quantity demanded equals quantity supplied. D. The unemployment rate is six percent.