Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.

A country opens up to trade and exports computer chips. In the computer chip market, surplus has been redistributed from

A) consumers to producers. B) producers to consumers. C) producers to government. D) government to consumers.

The Heckscher-Ohlin model predicts all of the following EXCEPT

A) the volume of trade. B) which country will export which product. C) which factor of production within each country will gain from trade. D) that relative wages will tend to become equal in both trading countries. E) that trade increases a country's overall welfare.