Under a fixed exchange rate system, if the real interest rate is at its lower bound and the central bank implements expansionary policy, real GDP will ________ and the output gap will ________

Because of the existence of comparative advantage, the total output of goods is higher when each producer

A) produces many different goods. B) produces at the midpoint of its PPF. C) specializes in the production of one good or a few goods. D) makes both intermediate and final goods.

Assume that you allocate your income to calzones and juice and that you have not yet spent your entire budget. If the marginal utility of a fourth calzone is 100 and the marginal utility of a third glass of juice is 50, you would

a. eat a fourth calzone because it has higher marginal utility b. drink a third glass of juice c. drink a third glass of juice if its price is lower than the price of calzones d. drink a third glass of juice if its price is less than half the price of the calzone e. drink a third glass of juice because it has lower marginal utility