An excise tax levied on a product will impose a larger relative burden on consumers (and a smaller relative burden on sellers) when
a. the supply of the product is relatively inelastic.
b. the supply of the product is relatively elastic.
c. the demand for the product is relatively inelastic.
d. either b or c is true
D
Economics
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According to the rational expectations theory, when the economy is at its long-run equilibrium output level, fully anticipated fiscal and monetary policies will affect the unemployment rate but not the inflation rate
a. True b. False Indicate whether the statement is true or false
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