What does an efficient payment scheme in a principal/agent relationship depend on?
The efficient payment scheme in a principal/agent relationship will depend on the principal's monitoring ability and the importance of random events.
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The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
Explain why GDP was never intended to be a measure of social well being
In 2007 and 2008, the sharp increase in the price of soybeans reflected primarily
A. the increased demand for corn needed to produce ethanol. B. an unseasonably warm spring in the soybean-producing states of Indiana, Illinois, and Iowa. C. government cash subsidies to soybean producers per ton harvested. D. increased use of advanced fertilizers by soybean producers.