Refer to the figure above. Calculate the total surplus in Lithasia under free trade

Which of the following statements is true of the economy in the long run?

1. real GDP eventually moves to potential because all wages and prices are assumed to be flexible. 2. the economy can achieve its natural level of employment and potential output at any price level. 3. there is no cyclical unemployment. A. I only B. I and II only C. I and III only D. I, II, and III

The division of the burden of a tax between buyers and sellers in a market is called tax allocation

Indicate whether the statement is true or false