Your local government needs to increase tax revenue. To increase tax revenue it can either increase the property tax on commercial property or increase the property tax on all property. The government wants to impose the smallest excess burden possible. Because the demand for commercial property is ________ elastic than the demand for all property, you recommend that local government increase the property tax on ________ property.

All of the following are examples of normative statements EXCEPT:

A. Output per person typically grows more slowly than output per worker. B. Low unemployment is more desirable than low inflation. C. Output per person should increase at an average annual rate of 5 percent. D. High rates of economic growth are preferable to low rates.

Based on the given figure, the economy is initially in long-run equilibrium at point A. If there is a favorable supply shock that increases potential output and shifts the long-run aggregate supply curve from LRAS to LRAS', then the new long-run equilibrium is reached at point:

A. E. B. C. C. B. D. D.