Using the above figure, if the government levies a new unit tax in this market, S represents the original supply curve, and St represents the after-tax supply curve, then the after-tax price paid by consumers is the vertical distance from the origin

Endogenous variables

A) are correlated with the error term. B) always appear on the LHS of regression functions. C) cannot be regressors. D) are uncorrelated with the error term.

The "official measure" of the deficit (the one reported by the government)

A) tells us the change in government nominal debt. B) is equal to nominal interest payments on the debt plus the primary deficit. C) overestimates the real budget deficit whenever the inflation rate is positive. D) all of the above E) none of the above