In the classical model, an increase in aggregate demand will lead to an increase in wage rates while a decrease in aggregate demand will

If a nation's goods exports are $55 billion, while its goods imports are $50 billion, we can conclude with certainty that this nation has a:

A. balance of trade (goods) surplus. B. balance of payments surplus. C. positive balance on current account. D. positive balance on goods and services.

Production of a catheter in the U.S. requires either one skilled worker-day or two unskilled worker-days, while production of the same device in Guatemala, because of its relative lack of transportation and communications infrastructure, requires either three skilled worker-days or four unskilled worker-days. Production of a hammock in the U.S. requires one-fourth skilled worker-day or one-third unskilled worker-day, while production of a hammock in Guatemala requires one-third skilled worker-day or one unskilled worker day. If one hundred unskilled worker-days are moved from producing hammocks to producing catheters in the U.S., while one hundred twenty skilled worker-days are moved from producing catheters to producing hammocks in Guatemala, combined production of the two goods in the

two countries will change by A. no net change in production of the two goods would occur. B. five additional catheters and thirty fewer hammocks. C. thirty additional catheters and five additional hammocks. D. ten additional catheters and sixty additional hammocks.