Recall the Application about the decrease in taxes on cigarettes in several Canadian provinces in 1994 to answer the following question(s). According to this Application, after the government deceased cigarette taxes in several Canadian provinces, demand for cigarettes ________ in these provinces, shifting the demand curve to the ________.

To help pull an economy out of a recession and put additional income in the hands of the public, a government can force its expenditures to ________ its revenues and create a ________

A) reduce; deficit B) exceed; special taxes C) stimulate; depression D) exceed; deficit

The incidence of taxation refers to:

A. Who in society actually pays the tax B. The structure of basic income tax rates C. Whether taxes are progressive or regressive D. Whether or not the benefits-received principle applies