Differences in productivity can actually benefit society even when this results in increases in income inequality

According to your authors, the "boom" phase of the so-called "business cycle" is

A) caused by an expansionary increase of the money supply. B) a systematic accumulation of mistakes among businesses and households across the economy. C) undertaken because business planners miscalculate the expected profitability of their new ventures. D) ultimately followed by a recessionary "bust" as people begin to correct for the mistakes they've made during the boom phase of the cycle. E) described correctly by all of the above statements.

For a farmer, the long-run would be the current growing season, where she can vary the amount of irrigation, pesticides, and fertilizer on a fixed number of acres planted

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