We depart from the assumptions of classical economics when we focus on the relationship between the quantity of output and the ________ level.

If the investment curve is relatively vertical, the Keynesian conclusion is that the transmission mechanism has little effect on the economy

a. True b. False Indicate whether the statement is true or false

Consider a good to which a per-unit tax applies. The size of the deadweight that results from the tax is smaller, the

a. less elastic is the demand for the good. b. less elastic is the supply of the good. c. smaller is the amount of the tax. d. All of the above are correct.