The government unit that wants to achieve "revenue enhancement" will find it considerably more favorable to enact an excise tax on goods whose demand is
A) highly elastic.
B) relatively elastic.
C) highly inelastic.
D) unitary elastic.
C
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Which of the following categories of goods and services is included in the CPI?
a. food b. transportation c. housing d. All of these.
A change in the tax laws that increases the supply of loanable funds will have a smaller effect on investment when
a. the demand for loanable funds is more elastic and the supply of loanable funds is more inelastic. b. the demand for loanable funds is more inelastic and the supply of loanable funds is more elastic. c. both the demand for and supply of loanable funds are more elastic. d. both the demand for and supply of loanable funds are more inelastic.
A simultaneous decrease in the demand and the supply of good X always leads to a decrease in the price of good X
Indicate whether the statement is true or false
The long-run aggregate supply curve is vertical at
A. potential output. B. the actual level of nominal output. C. 100% employment of the labor force. D. the actual level of real output.