Author Question: The imposition of all taxes, except a Pigouvian tax, leads to ________. A) an increase in ... (Read 68 times)

Lobcity · **on:** Jun 29, 2018

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