Refer to Figure 4-18. How much of the tax is paid by producers?

Other things being equal, an increase in the supply of money

A) reduces the amount of money balances. B) reduces aggregate demand. C) generates significant changes in relative prices. D) increases the price level.

The "income effect" in the market for aspirin means that

A) aspirin are generally taken by people with higher than average incomes. B) a decrease in the price of a substitute good like acetaminophen will make aspirin takers feel a little poorer than they were before. C) an increase in the price of aspirin will reduce the total purchasing power of aspirin takers, making them able to afford fewer aspirin. D) an increase in the price of aspirin will cause headache sufferers to look for a lower priced remedy.