Examples of comparative advantage show how trade between two countries can make each better off. Compared to their pre-trade positions, trade makes both countries better off because in each country

In the long run in the Keynesian model, a beneficial supply shock would leave the economy with a higher level of output, but also a ________ real interest rate and a ________ price level

A) higher; lower B) lower; higher C) lower; lower D) higher; higher

The "wealth effect" of lower interest rates is that bond prices are __________ so people respond to this by __________ consumption and thus __________ aggregate demand

A) increased; increasing; increasing B) increased; increasing; decreasing C) lowered; increasing; increasing D) lowered; increasing; decreasing