Which of the diagrams best describes the long-run path of real (inflation-adjusted) farm prices?

If the United States has a lower opportunity cost than Mexico in the production of wheat, then it will import wheat from Mexico.

a. true b. false

An increase in unemployment insurance payments would, in effect, ________ the amount of time spent searching for a job, which would increase ________ unemployment

A) decrease; frictional B) increase; frictional C) increase; cyclical D) decrease; cyclical