Evaluate the following? statement: In the short run, if an economy experiences inflation of 10 percent, the cause of the inflation is unimportant. Whatever the cause, the only important issue the government needs to be concerned with is the 10 percent increase in the price level.

The tax incidence on buyers is higher if ________

A) the buyers and sellers of a good are equally sensitive to price changes B) the elasticity of the market demand curve is higher than the elasticity of the market supply curve C) the elasticity of the market supply curve is higher than the elasticity of the market demand curve D) the number of sellers in a market is larger than the number of buyers

Refer to Figure 3-1. A decrease in the expected future price of the product would be represented by a movement from

A) A to B. B) B to A. C) D1 to D2. D) D2 to D1.

Most macroeconomic policy consists of:

A) monetary policy B) fiscal policy C) exchange-rate policy D) regulatory policy

The above figure shows the market for apples. If the government restricts output to no more than 300 pounds, then

A) 300 pounds of apples will be sold at $3. B) 200 pounds of apples will be sold at $3. C) no apples will be sold. D) None of the above.