The reason why the price level does not change along the horizontal segment of the aggregate supply curve is because
a. the price increases for some goods are offset by the price decreases for other goods
b. unused resources can be put to work without creating any upward pressure on prices
c. the government fixed the price of resources so that they cannot increase in price when employment levels rise
d. GDP rises rapidly so that the price level does not rise
e. GDP rises slowly so that the price level does not rise
B
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In the long run, the beneficiaries of farm price supports are
a. tenant farmers b. consumers c. taxpayers d. milk drinkers e. early owners of specialized resources
Which of the following taxes would result in the greatest tax burden for buyers?
a. A tax on pharmaceuticals b. A tax on luxury cars c. A tax on movie tickets d. A tax on restaurant meals