Reaction lag is the term used to express the fact that some time passes before changes in the money supply are properly translated into changes in real GDP.
a. True
b. False
Indicate whether the statement is true or false
Question 2
Which of the following statements is correct regarding the imposition of a tax on gasoline?
a. The incidence of the tax always falls on the buyer.
b. The incidence of the tax depends upon the price elasticities of demand and supply.
c. The incidence of the tax always falls on the sellers.
d. The oil company will ultimately pay.
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