For which of the following goods is the income elasticity of demand likely lowest?

When aggregate planned expenditure is less than GDP,

A) the economy definitely is at its equilibrium expenditure but even so, firms decrease production. B) firms increase production until the economy reaches equilibrium expenditure. C) the economy definitely is at its equilibrium expenditure and firms do not change production. D) firms decrease production until the economy reaches equilibrium expenditure. E) the economy might be at its equilibrium expenditure and if it is, firms do not change their production.

Which of the following cannot be used to justify efficiency wages

a. Sticky price (menu cost) models b. turnover costs c. worker shirking d. worker morale