1. An economy uses only labor as input to produce two goods, A and B. If its production possibilities frontier (PPF) of two goods is a negative-slopedstraightline, what is the implication in opportunity costs? Will the law of increasing costs still hold? Please state briefly.

2 What are the impacts of the trade war with Chinaon the U.S. real GDP in your opinion? Please state both the short-run and long-run impacts briefly. Providing a reference link (URL) to an article that supports your opinion is a plus.