After a tax is imposed, a. consumers pay a higher price. b. ...

[joesmith1212]

After a tax is imposed,
 a. consumers pay a higher price.
 b. consumers lose consumer surplus.
  c. producers lose producer surplus.
  d. all of the above are true.

Question 2

Rational expectations theory implies that the more completely the effects of policy makers are foreseen, the smaller their short run effects on real output and unemployment, and the greater their short run effects on the price level.
 a. True
  b. False
  Indicate whether the statement is true or false

[Edwyer]

Answer to Question 1

d

Answer to Question 2

True