Refer to the diagram in which S is the before-tax supply curve and S t is the supply curve after an excise tax is imposed. The total tax payment to government is shown by area(s):

The long-run level of RGDP changes whenever the aggregate demand curve shifts

a. True b. False Indicate whether the statement is true or false

Economic analysis indicates that the increasing government expenditures and growth of third-party payments accompanying the Medicare and Medicaid programs

a. reduced the demand for healthcare services. b. reduced the incentive of consumers to economize on their use of healthcare. c. increased the incentive of consumers to economize on their use of healthcare. d. placed downward pressure on the prices of healthcare services.