More stable macroeconomic policy does not contribute to less variability in real output

Suppose that Jeanna's income rises. If tomatoes are a normal good, what will happen to the quantity of tomatoes purchased by Jeanna? Is this an income effect, a substitution effect, or both? Explain

What will be an ideal response?

Refer to Table 2-14. Does either Ireland or Scotland have an absolute advantage and if so, in what product?

A) Scotland only has an absolute advantage in producing guitars. B) Ireland only has an absolute advantage in producing motorcycles. C) Ireland only has an absolute advantage in producing guitars. D) Scotland has an absolute advantage in producing both products.