An increase in energy costs will most likely cause the price level and real gross domestic product to change in which of the following ways?

Which of the following is true concerning the substitution effect of a decrease in price?

A) It will lead to an increase in consumption only for a normal good. B) It always will lead to an increase in consumption. C) It will lead to an increase in consumption only for an inferior good. D) It will lead to an increase in consumption only for a Giffen good.

The railroad expanded the size of our markets and therefore almost everything marketable, creating industries where none existed before. Joseph Schumpeter explained such an outcome as the result of

a. the upswing (or recovery) phase of a multi-investment cycle b. the upswing (or recovery) phase of an internal cycle c. the upswing (or recovery) phase of an innovation cycle d. an entrepreneurial revolution in U.S. industry e. the combination of immigration and capital deepening