The figure below shows the production-possibility curves of Canada (AB) and the rest of the world (CD). The international price ratio faced by the countries is represented by the line P2. I1 and I2 are community indifference curves for Canada and the rest of the world. After engaging in free trade, Canada consumes ________ bales of cotton and ________ bushels of wheat.

The approach used in the U.S. to measure the economy's aggregate performance is

A) the total value of securities. B) national income accounting. C) to add up the value of intermediate goods. D) to add up the total value of financial transactions, transfer payments, and secondhand goods. E) all of the above.

The circular flow model illustrates that aggregate spending in the product markets equals 70 percent of aggregate income earned in the factor markets

a. True b. False Indicate whether the statement is true or false