Bob could do 3 broken legs and 7 bandage wounds, James can do 2 broken legs and 5 bandages wounds Bob has both absolute advantages

Suppose the government imposes a price ceiling on gasoline that is less than the equilibrium price. As a result

A) the price of gasoline rises to the equilibrium price. B) there is incentive for buyers to undertake search activity. C) the supply of gasoline will increase and the supply curve will shift rightward. D) the demand for gasoline will decrease and the demand curve will shift leftward.

Which of the following is CORRECT? The demand for money

A) increases as real GDP increases. B) decreases as the price level increases. C) depends on the quantity of money. D) increases when the nominal interest rate rises.