U.S. Republican presidential hopefuls debated how to fix the economy and create jobs, as they faced off in Michigan, and Texas Governor Rick Perry may have hurt his chances by struggling to answer a question.

Perry failed to remember the names of all three federal agencies he has promised to eliminate. Once a front-runner in the race, Perry has seen his poll numbers plummet after several weak debate performances.

Perry admitted after the debate that he was embarrassed at the gaffe, but said people will understand that it is his “conservative principles that matter.”

The debate Wednesday outside the city of Detroit was crucial for Georgia businessman Herman Cain, who has surged to the front of the pack and is hoping to maintain momentum despite the emergence of sexual harassment accusations against him.

Cain responded to a question about the allegations to loud applause from the audience, saying Americans deserve better than someone being tried in the court of public opinion based on “unfounded allegations.”

But his Republican competitors chose not to engage in the fray surrounding the allegations, instead directing their criticism toward the White House and President Barack Obama.

The debate comes one year before the general election, and about two months before the first state-by-state votes to choose a Republican candidate to face President Obama, a Democrat, in the 2012 poll.

Former Massachusetts governor Mitt Romney, also a leading Republican candidate in national polls, received big applause when he said the U.S. has a president and administration that “doesn’t like business,” referring to a common Republican refrain that Mr. Obama has increased regulations and taxes on businesses that diminish their ability to grow.

The other Republican hopefuls taking part in the debate were Representatives Michele Bachmann and Ron Paul, former House speaker Newt Gingrich, former U.S. ambassador to China Jon Huntsman, Texas Governor Rick Perry, and former Senator Rick Santorum.