If the government wants to reduce smoking, it should impose a tax on
a. buyers of cigarettes.
b. sellers of cigarettes.
c. either buyers or sellers of cigarettes.
d. whichever side of the market is less elastic.
c
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Temporary supply shocks:
A. are significant events that directly affect production. B. shift the aggregate-supply curve in the short run. C. would affect the short-run equilibrium. D. All of these are true.
Unreimbursed medical expenses in excess of 8.5% of AGI are tax deductible.
A. True B. False C. Uncertain
If the country of Versovia experiences an inflationary gap and the central bank of the country reduces the money supply in the economy, there will be a(n): a. decrease in both the output level and the price level in the economy
b. decrease in the output level and an increase in the price level in the economy. c. increase in the output level and a decrease in the price level in the economy. d. increase in the both the output level and the price level in the economy.
An economic contraction caused by a shift in aggregate demand causes prices to
a. rise in the short run, and rise even more in the long run. b. rise in the short run, and fall back to their original level in the long run. c. fall in the short run, and fall even more in the long run. d. fall in the short run, and rise back to their original level in the long run.