Author Question: In the above figure, the tax incidence is A) that most of it is paid by the buyers. B) that most ... (Read 85 times)

storky111 · **on:** Jun 29, 2018

In the above figure, the tax incidence is

A) that most of it is paid by the buyers.
B) that most of it is paid by the sellers.
C) split equally so that the buyers and sellers pay the same amount.
D) that neither the buyers nor the sellers pay it.

Question 2

In long-run macroeconomic equilibrium, the

A) real wage rate has adjusted so that the economy is on the short-run aggregate supply curve but not on the long-run aggregate supply curve.
B) long-run aggregate supply curve has shifted in response to a money wage rate increase so that potential GDP equals real GDP.
C) aggregate demand curve adjusts to the point where the long-run aggregate supply curve and the short-run aggregate supply curve intersect.
D) None of the above answers is correct.