The assumption that labor markets clear makes it very easy for the classical model to explain expansions

To avoid trade restrictions, a U.S. firm moves its final production process to Ireland and then ships the final products to Germany. This is an example of

A) trade deflection. B) trade diversion. C) protectionism. D) rules of origin.

In the short-run, following the opening of trade

A. groups tied to declining sectors of the economy will suffer from lower returns. B. workers will suffer from lower wages, but landowners will benefit from higher rents. C. workers in the country can change jobs but will receive the same wage. D. gross output remains constant.