If we consider the specificfactors model, the effect of an increase in exports on the real wages of workers:
a. is inconclusive because some goods' prices will be higher compared with the wage, and some will be lower.
b. absolutely increases the buying power of the real wage.
c. absolutely decreases the buying power of the real wage.
d. will encourage foreign workers to emigrate to the United States.
Ans: a. is inconclusive because some goods' prices will be higher compared with the wage, and some will be lower.
Economics
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