Suppose a tax is imposed on a good. This will
A) increase the price paid by the buyer and decrease the price received by the seller.
B) increase the price paid by the buyer but leave the price received by the seller unchanged.
C) decrease the price received by the seller but leave the price received by the buyer unchanged.
D) increase the price received by the seller and decrease the price paid by the buyer.
A
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In the first half of 2008, food and energy costs in the United States increased. At the same time, the financial crisis slowed production as firms predicted lower profits. A ________ macroeconomist would support the use of ________
A) classical; taxes to push the economy back to full employment B) Keynesian; fiscal or monetary policy to stimulate aggregate demand C) classical; monetary policy to stimulate aggregate demand D) Keynesian; technology to push the economy back to full employment
The Phillips curve was ________
A) never very popular in policy circles B) influential in efforts to bring the unemployment rate down to low levels C) generally confirmed in the 1970s, when low unemployment persisted despite rising inflation D) all of the above E) none of the above