As real U.S. GDP increases, U.S. income increases and so
A) U.S. imports increase.
B) U.S. exports decrease.
C) U.S. imports decrease.
D) investment increases.
E) U.S. exports increase.
Question 2
Fresh orange juice and frozen orange juice are substitutes in production. The price of fresh orange juice rises. As a result, the equilibrium price of frozen orange juice ________ and the equilibrium quantity ________.
A) rises; increases
B) rises; decreases
C) does not change; decreases
D) falls; increases
E) falls; decreases