In Bangladesh one person can produce 330 pounds of rice or 110 shirts in one year. In Singapore one person can produce 400 pounds of rice or 200 shirts in one year. Which of the following statements is true?
a. Singapore has a comparative advantage in the production of rice

Between the base period and the next period, prices stay constant. The GDP price index in the next period

A) cannot be calculated without knowing how much the quantity changed. B) is equal to 1 because there is no change. C) is equal to 50 because there is no change. D) will equal 0 because there is no change. E) is equal to 100 because there is no change.

Which of the following describes the effect of government spending?

A. Govt spending increases, taxes increase, disposable income increases, consumption decreases, AD decreases, price and quantity decrease B. Govt spending increases, money supply increases, income decreases, investment increases, AD increases, price and quantity decrease C. Govt spending increases, AD increases, price and quantity increase D. Govt spending increases, consumption increases, AD increases, price and quantity decrease