In the Cobb-Douglas production function, Y = KaL1-a, the fraction of income spent as payments to labour is:

The official measure of the deficit

A) always underestimates the correct measure of the deficit when inflation is positive. B) differs from the correct measure by the inflation rate times taxes. C) depends on the nominal interest rate. D) depends on the real interest rate. E) none of the above

A firm in a monopolistically competitive market can earn short-run profits but not long-run profits

a. True b. False Indicate whether the statement is true or false