In the two-sector (manufacturing and agriculture) specific-factors model, an increase in the price of the manufactured good will cause:
A) a decrease in nominal wages in both the agricultural and manufacturing sectors.
B) an increase in real wages in both the agricultural and manufacturing sectors.
C) an increase in both nominal and real wages in both the agricultural and manufacturing sectors.
D) an increase in nominal wages in both the agricultural and manufacturing sectors.
Correct Answer:
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