Absolute advantage governs the potential for gains from trade. ...

[nautica902]

Absolute advantage governs the potential for gains from trade.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

When the spending of consumers, businesses, government, and foreigners (net exports) is less than the aggregate output level of the economy, the Keynesian model result is that:
 a. output will rise.
  b. output will fall.
  c. prices will rise.
  d. inventories will tend to decline.

[ebonylittles]

Answer to Question 1

False

Answer to Question 2

b