A competitive firm rents capital until the marginal product of capital equals the:

According to the new classical economics, predictable changes in aggregate demand

a. affect the level of real output. b. will not affect the level of real output. c. may or may not affect the level of real output. d. None of the above

If the supply of a good is perfectly inelastic, then suppliers will bear the full burden of an excise tax

a. no matter how elastic the demand for the good is. b. only if demand is perfectly elastic. c. only if demand is perfectly inelastic. d. only if the government forbids them to raise the price of the good.