Free trade can promote greater output because of the principle of comparative advantage

The graph shows the labor market for painters. The lower the wage rate, the ________ is the quantity of painters that firms demand and the ________ is the quantity of painters that households are willing to supply

A) greater; smaller B) greater; greater C) smaller; greater D) smaller; smaller E) None of the above answers is correct because both the demand and supply curves will shift in response to the change in the wage rate.

A contractionary monetary policy decreases net exports by ________ interest rates and ________ the value of the dollar

A) lowering real; decreasing B) lowering real; increasing C) raising nominal; increasing D) raising real; increasing