Starting at full employment, a business cycle can be described by the following sequence: ________ equilibrium, ________ equilibrium, ________ equilibrium

If the ________ minus the ________ is positive, Project A is chosen over Project B

A) cost of Project A; cost of Project B B) net benefit of Project B; net benefit of Project A C) net benefit of Project A; net benefit of Project B D) total benefit of Project B; total benefit of Project A

To keep employees from shirking, invest in greater monitoring

a. when monitoring is expensive relative to its benefits b. especially when monitoring is not very efficient c. when employees respond well to incentive contracts d. when incentives fail to solve either moral hazard and adverse selection problems with employees