Government spending is set by the federal authorities in such a way that aggregate supply just equals aggregate spending

A person who has an absolute advantage in the production of all goods will

A) also have a comparative advantage in the production of all goods. B) not be able to gain from specialization and exchange. C) have a production possibilities frontier with a constant slope. D) have a comparative advantage in the production of some goods but not in the production of others.

Suppose that the labor movement has a revival in the United States and the majority of workers join labor unions. As a result we would expect

A) the unemployment rate to fall. B) the unemployment rate to rise. C) the labor force participation rate to fall. D) no change in the unemployment rate or labor force participation rate.