Refer to the graphs and information below. Assume that prior to specialization and trade, Italy and Greece preferred points I and G on their respective production possibilities curves. As a result of complete specialization according to comparative advantage, the resulting gains in total output will be:

Which of the following statements about inflation targeting is true?

A) Inflation targeting would not reduce the flexibility of monetary policy to address other policy goals. B) Inflation targeting by the central banks in other countries has not typically lowered inflation. C) Inflation targeting would make it easier for households and firms to form accurate expectations of future inflation, improving their planning and the efficiency of the economy. D) Inflation targeting would not allow the central bank the flexibility to take action against a severe recession.

Evidence suggests that mergers and increased profitability do not necessarily go hand in hand

Indicate whether the statement is true or false