The self-correcting mechanism is the reason that the economy will behave as the classical model predicts in the long run

Which of the following is TRUE about the effects of an excise tax if consumers are totally unresponsive to price changes?

A) Consumers pay all of the excise tax. B) Producers pay all of the excise tax. C) Consumers and producers share the excise tax equally. D) Neither consumers nor producers pay the excise tax.

The aggregate demand curve indicates the relationship between:

A. the real wage rate and the quality of resources demanded by producers of goods and services. B. the interest rate and the amount of loanable funds demanded by borrowers. C. the natural rate of unemployment and the demand for goods and services when the economy is in long-run equilibrium. D. the general price level and the aggregate quantity of goods and services demanded.