The imposition of all taxes, except a Pigouvian tax, leads to ...

[Lobcity]

The imposition of all taxes, except a Pigouvian tax, leads to ________.
 
  A) an increase in consumer surplus
  B) an increase in producer surplus
  C) a fall in the price of the good
  D) a loss in total welfare

Question 2

In the figure above, the ________ gap is one trillion dollars. To close the gap, the government can ________ government expenditure and/or ________ taxes.
 
  A) recessionary; increase; decrease
  B) inflationary; decrease; increase
  C) inflationary; increase; increase
  D) recessionary; decrease; decrease
  E) recessionary; decrease; increase

[elyse44]

Answer to Question 1

D

Answer to Question 2

A

[Lobcity]

Thanks for the timely response, appreciate it

[epscape]

Gracias!