Author Question: If workers in Mexico produce fewer goods and services per hour than workers in the United States in ... (Read 165 times)

Capo

  • Hero Member
  • *****
  • Posts: 545
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

  • Sr. Member
  • ****
  • Posts: 334
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.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

Did you know?

Less than one of every three adults with high LDL cholesterol has the condition under control. Only 48.1% with the condition are being treated for it.

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

For a complete list of videos, visit our video library