This topic contains a solution. Click here to go to the answer

Author Question: According to the new Keynesian school of thought, fiscal policy is a completely ineffective tool in ... (Read 35 times)

TFauchery

  • Hero Member
  • *****
  • Posts: 500
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.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

bulacsom

  • Sr. Member
  • ****
  • Posts: 329
Answer to Question 1

False

Answer to Question 2

b





 

Did you know?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

Did you know?

Limit intake of red meat and dairy products made with whole milk. Choose skim milk, low-fat or fat-free dairy products. Limit fried food. Use healthy oils when cooking.

Did you know?

All patients with hyperparathyroidism will develop osteoporosis. The parathyroid glands maintain blood calcium within the normal range. All patients with this disease will continue to lose calcium from their bones every day, and there is no way to prevent the development of osteoporosis as a result.

Did you know?

There are actually 60 minerals, 16 vitamins, 12 essential amino acids, and three essential fatty acids that your body needs every day.

For a complete list of videos, visit our video library