Refer to the above figure. If real Gross Domestic Product (GDP) is $6 trillion, then unplanned business inventories will

The greater the amount of time that passes after a price change, the

A) less elastic supply becomes. B) more elastic supply becomes. C) more negative supply becomes. D) steeper the supply curve becomes. E) None of the above answers is correct.

One disadvantage of a floating exchange rate system compared to a fixed or managed float exchange rate system is

A) it does not allow the exchange rate to reflect demand and supply in the market. B) it is difficult to maintain. C) it can worsen inflation if domestic prices of imports rise quickly. D) it eliminates the possibility of depreciation during a recession.