If workers in Mexico produce fewer goods and services per hour ...

[Capo]

If workers in Mexico produce fewer goods and services per hour than workers in the United States in all areas of production, then
 
  A) Mexico will benefit from trade with the United States, but the United States will not.
  B) the United States will benefit from trade with Mexico, but Mexico will not.
  C) neither Mexico nor the United States will benefit from trade with the other.
  D) both the United States and Mexico will benefit from trade with the other.
  E) it is unknown whether either country can benefit from trade with the other.

Question 2

What is the effect on the aggregate demand curve from an increase in the price level? In particular, does the aggregate demand curve shift leftward or rightward?
 
  What will be an ideal response?

[TheNamesImani]

Answer to Question 1

D

Answer to Question 2

When the price level increases, there is a movement along the aggregate demand curve. The quantity of real GDP demanded decreases in response to an increase in the price level. However, the aggregate demand curve does not shift.