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Please answer these multiple choice questions An economy has two workers, Paula and Ricardo. Every day they work, Paula can produce 8 computers or 16

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Please answer these multiple choice questions

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An economy has two workers, Paula and Ricardo. Every day they work, Paula can produce 8 computers or 16 shirts, and Ricardo can produce 4 computers or 12 shirts. At what price would Paula and Ricardo be willing to trade with each other? 0 4 shirts per computer 0 1 shirt per computer 0 2.5 shirts per computer 0 None of the above Consider the AD-AS model. Suppose there is an increase in the central bank's inflation target. Which of the following is TRUE? 0 On impact, inflation will rise but short-run output will fall 0 On impact, inflation will rise and real interest rates will rise 0 There is no long-run effect on either output or the nominal interest rate Q There is no long-run effect on either output or the real interest rate

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