According to the new Keynesian school of thought, fiscal policy ...

[TFauchery]

According to the new Keynesian school of thought, fiscal policy is a completely ineffective tool in combating supply-side shocks.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

The government proposes a tax on flowers in order to boost its revenue. If the elasticity of demand is 1.3 and the elasticity of supply is 0.7:
 a. Consumers will bear the majority of the burden of the tax.
 b. Producers will bear the majority of the burden of the tax.
 c. Consumers and producers will bear equal shares of the burden of the tax.
 d. It does not tell us enough to reveal whether consumers or producers will bear most of the burden of the tax.

[bulacsom]

Answer to Question 1

False

Answer to Question 2

b

[TFauchery]

Thank you

[bulacsom]

No problemo