Other things equal, an adverse supply shock would

The above figure shows the market for blouses. The government decides to impose the sales tax on sellers, as shown in the figure. Using the figure, how much tax revenue does the government raise?

A) $20,000 B) $40,000 C) $60,000 D) $80,000

Keynesians argue that the stabilizing effects of a fall in investment and the resulting decline in the price level assumed by the monetarists

A) will not happen because the price level will actually rise. B) will happen. C) is not likely to happen because the price level rarely ever falls. D) may or may not happen depending on what happens to interest rates.