Suppose a hurricane decreased the supply of oranges so that the price of oranges rose from $120 a ton to $180 a ton and quantity sold decreased from 800 tons to 240 tons. What is the absolute value of the price elasticity of demand?

Classical macroeconomic theory was discredited and gave way to the first Keynesian approach as a result of

A) the collapse of the gold standard at the outset of World War I. B) the Great Depression of the 1930s. C) the wage-price controls of World War II. D) the rapid inflation of the late 1960s. E) the switch from fixed to flexible exchange rates in the early 1970s.

Which of the following variables are included in the index of leading indicators?

a. new orders placed with manufacturers, length of average workweek, permits for new housing starts b. changes in the M1 money supply, number of new credit cards, political stance of current politicians c. average worker salary, average number of children per family, current standard of living d. labor-force participation rate, household debt as a share of disposable income, the real interest rate