All other things held constant, lower marginal (income) tax rates
A) necessarily increase tax revenues.
B) necessarily decrease tax revenues.
C) decrease the attractiveness of productive activities relative to leisure and tax- avoidance activities, and shift the SRAS curve rightward.
D) do not affect the attractiveness of productive activities relative to leisure and tax- avoidance activities and therefore the SRAS does not shift rightward or leftward.
E) increase the attractiveness of productive activities relative to leisure and tax- avoidance activities and shift the SRAS curve rightward.
E
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In the figure above, point B represents
A) a current account deficit. B) a current account surplus. C) a reduction in inventories. D) a temporary imbalance in the money markets.
A potential benefit that comes from social regulations would be
A) higher costs. B) a cleaner environment. C) higher tax collections. D) more layoffs.
The fiscal policy target for achieving full employment when an inflationary gap exists is known as the
A. AD excess. B. Fiscal restraint. C. AD shortfall. D. Fiscal stimulus.
The major way that the government supports crop prices is by granting nonrecourse loans to farmers
Indicate whether the statement is true or false