The seller passes on the entire tax to the consumer when demand is _____.
Fill in the blank(s) with the appropriate word(s).
perfectly inelastic
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Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
A term that categorizes patterns of exchange rate behavior is known as:
a. exchange rate regimes. b. exchange rate realms. c. exchange rate principles. d. exchange rate observations.
Recently, there has been little political stability in Brazil
Indicate whether the statement is true or false
In a decreasing cost industry, the
a. long-run supply curve is horizontal b. short-run supply curve slopes downward c. long-run demand curve slopes upward d. long-run supply curve slopes downward e. long-run supply curve slopes upward