Social insurance taxes are paid by corporations based on their profits.

Both the long-run and short-run aggregate supply curves will shift when

A) the endowments of the factors of production change. B) the government increases defense spending. C) an event occurs which is expected to last only a short period of time. D) they are both upward sloping.

If the price elasticity of demand for a good is inelastic, a price change causes:

A. an infinite change in quantity demanded. B. a zero change in quantity demanded. C. a more than proportionate change in quantity demanded. D. a less than proportionate change in quantity demanded.