Administrative costs make small loans less profitable than large ones, other things equal

Data on annual percentage changes in real GDP, consumption, and investment in the United States shows that fluctuations in investment _____

a. are noticeably smaller during expansions than during recessions b. are roughly similar to fluctuations in consumption c. are roughly similar to fluctuations in GDP d. are closely followed by economic forecasters because those fluctuations often signal that a recession will occur e. account for most of the variability in GDP

If a firm's labor input response to a decrease in the wage differs between the short and the long run, we know that more workers will be hired after the initial short run adjustment.

Answer the following statement true (T) or false (F)