Chausiku’s country has seen its production possibilities curve shift down and to the left over the past five years. Which of the following has most likely affected Chausiku’s country during this period?

When aggregate planned expenditure exceeds real GDP,

A) an unplanned increase in inventories occurs. B) real GDP remains at its equilibrium level. C) firms decrease production. D) an unplanned decrease in inventories occurs. E) real GDP decreases.

"If the wage rate paid to one form of labor is twice the cost of another form of labor, the first type of labor must be twice as productive." Comment

Indicate whether the statement is true or false