According to the factor price equalization theorem, if country B is labor abundant, then if country B initiates trade with country A
A) wages and rents should fall in A.
B) rents and rents should rise in A.
C) wages should rise and rents should fall in A.
D) wages should fall and rents should rise in A.
D
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Other things the same, an increase in taxes with no change in government purchases makes national saving
a. rise. The supply of loanable funds shifts right. b. rise. The demand for loanable funds shifts right. c. fall. The supply of loanable funds shifts left. d. fall. The demand for loanable funds shifts left.
Along the short-run supply curve (SRAS), a decrease in the aggregate demand curve will decrease:
A. both the price level and real GDP. B. real GDP without raising the price level. C. the price level without affecting real GDP. D. the price level but increase real GDP.