Traditional Keynesian economics assumes that prices are ...

[jman1234]

Traditional Keynesian economics assumes that prices are relatively flexible in response to changes in aggregate expenditures.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

A tax is imposed on wine. Sellers will bear the full burden of this tax if the:
 a. demand for wine is perfectly inelastic.
 b. price elasticity of demand for wine equals 1.0.
  c. demand for wine is unit elastic.
 d. supply for wine is perfectly inelastic.

[ASDFGJLO]

Answer to Question 1

False

Answer to Question 2

d