In the short run, a negative supply shock
a. causes firms' unit costs to decrease
b. shifts the AS curve to the right
c. causes output to decrease and the price level to increase
d. shifts the AD curve to the left
e. causes both output and the price level to decrease
C
Economics
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What happens to the total surplus in a market when the government imposes a tax?
a. Total surplus increases by the amount of the tax. b. Total surplus increases but by less than the amount of the tax. c. Total surplus decreases. d. Total surplus is unaffected by the tax.
Economics
Keynes believed that contractionary fiscal policy could help to slow down increases in unemployment.
Answer the following statement true (T) or false (F)
Economics