In the U.S. economy, the inflation rate in 1975 peaked at ________ percent.

Assume a purely competitive constant-cost industry is initially at long-run equilibrium. Now suppose that a decrease in consumer demand occurs. After all the long-run adjustments have been completed, the new equilibrium price:

A. And industry output will be less than the initial price and output B. Will be the same as the initial price, and the output will be less C. Will be greater than the initial, but the new output will be less D. Will be less than the initial price, but the new output will be greater

Recall the Application about the policies used by the European Union to support the agricultural sectors of is member countries to answer the following question(s). According to this Application, in recent years the European Union has reformed its agriculture policies by reducing or eliminating minimum prices. Ceteris paribus, these policy reforms would ________ excess supply by ________ prices.

A. reduce; raising B. reduce; lowering C. increase; raising D. increase; lowering