For a given supply curve, the more inelastic the demand for a good,
a. the more of an excise tax that is paid by sellers.
b. the less an excise tax is shifted.
c. the smaller the burden of an excise tax.
d. the more of an excise tax that is paid by buyers.
e. the smaller the increase in market price following imposition of an excise tax
D
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When Audrina raised the price of her homemade cookies, her total revenue increased. This suggests that the demand for Audrina's cookies is elastic
Indicate whether the statement is true or false
Which of the following is not an implicit cost?
A) wages B) opportunity cost of using an owner's savings C) owner-provided capital D) owner-provided labor
Aggregate demand is the sum of total domestic spending by the private sector
a. True b. False Indicate whether the statement is true or false
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real GDP and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. Real GDP rises, and nominal value of the domestic currency falls. b. Real GDP falls, and nominal value of the domestic currency rises. c. Real GDP rises, and nominal value of the domestic currency remains the same. d. Real GDP rises, and nominal value of the domestic currency rises. e. There is not enough information to determine what happens to these two macroeconomic variables.