Regardless of whether a tax is levied on sellers or buyers, taxes encourage market activity

In the long run, an increase in the quantity of money leads to

A) a smaller percentage increase in the real interest rate. B) a smaller percentage increase in the price level. C) an equal percentage increase in the price level. D) no effect on the price level or on real GDP. E) an equal percentage increase in the real interest rate.

In a two-good, two country world, if one country has an absolute advantage in the production of both goods, it must also have a comparative advantage in the production of both goods

Indicate whether the statement is true or false