An excise tax on gasoline causes
A) supply of gasoline to shift to the left.
B) a reduction in the quantity of gasoline demanded.
C) the market clearing price of gasoline to rise.
D) All of the above are correct.
D
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The short-run aggregate supply curve shows a(n):
a. direct relationship between the expected price level and nominal GDP supplied. b. inverse relationship between the actual price level and real GDP supplied c. direct relationship between the actual price level and nominal GDP supplied. d. direct relationship between the actual price level and real GDP supplied. e. inverse relationship between the expected price level and real GDP supplied.
The Federal Open Market Committee:
A. makes decisions that influence the nation's fiscal policy. B. reports directly to Congress. C. makes decisions that affect excess reserves available to banks. D. determines who may buy and sell government bonds.