A decrease in labor costs will cause aggregate ________.

Which of the following is true of the U.S. government?

a. The government in the United States takes the form of a single-party state where opposition parties are not legally allowed to take power. b. The size of the federal government in the U.S. has been declining since 1930. c. Employment in the government sector currently exceeds employment in the manufacturing sector. d. The U.S. federal government plays a much smaller role than state and local government due to states' rights. e. The service sector of the U.S. economy employs more number of people than the U.S. government.

Adverse selection:

A. is about actions and occurs after the parties have voluntarily entered into an agreement. B. is always present when moral hazard arises. C. relates to unobserved characteristics of people or goods and occurs before the parties have entered into an agreement. D. All of these statements are true.