U.S. import spending is not affected by U.S. real income but is influenced by the economic activity of its major trading partners and the exchange rate, hence import spending is taken as autonomous

Of the types of business organizations in the United States, corporations account for ________ percentage of firms and ________ percentage of profits

A) smallest; neither the largest nor smallest B) neither the largest nor smallest; the largest C) the smallest; the largest D) the largest; the largest

Refer to Figure 3-5. In a free market such as that depicted above, a shortage is eliminated by

A) a price decrease, decreasing the supply and increasing the demand. B) a price increase, increasing the quantity supplied and decreasing the quantity demanded. C) a price increase, increasing the supply and decreasing the demand. D) a price decrease, decreasing the quantity supplied and increasing the quantity demanded.