A positive temporary supply side shock will:
A. increase the level of potential output in the long run.
B. decrease the price level in the long run.
C. increase the price level in the long run.
D. have no effect in the long run.
Answer: D
Economics
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If the elasticities of demand for alcohol, tobacco and gasoline are low and the elasticities of supply are high, then the burden of these taxes (excise taxes) falls more heavily on buyers than on sellers
Indicate whether the statement is true or false
Economics
Refer to the below graphs. If union workers decide to take more leisure, while the prices of the products produced by union workers decrease, this situation is depicted in graph:
A. A
B. B
C. C
D. D
Economics