In order for a price ceiling to have an impact on a market it must be set above the equilibrium price

What is the key difference between the aggregate expenditure model and the aggregate demand/aggregate supply model?

A) The aggregate expenditure model examines monetary policy, whereas the aggregate demand/aggregate supply model does not. B) The aggregate demand/aggregate supply model assumes that the price level is fixed. C) The aggregate expenditure model assumes that real GDP is fixed. D) The aggregate expenditure model assumes that the price level is fixed. E) Monetary and real factors interact in the aggregate demand/aggregate supply model.

Two nations have the following production capacity given their endowment of resources. Country A can produce 50 units of beer or 80 units of pizzas. Country B can produce 100 units of beer or 90 units of pizzas. Which of the following statement is most appropriate?

A. Country A has a comparative advantage in beer and country B has an absolute advantage in pizzas. B. Country A has a comparative advantage in pizza and country B has a comparative advantage in beer. C. Country A has an absolute advantage both products. D. Both b and c are correct.