Looking at the supply-side effects on aggregate supply shows that a tax hike on labor income
A) decreases potential GDP.
B) weakens the incentive to work.
C) increases potential GDP because people work more to pay the higher taxes.
D) Both answers A and B are correct.
E) None of the above is correct.
D
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A system where goods and services are exchanged directly without a common unit of account is called the:
A) commodity system. B) fiat system. C) barter system. D) none of the above.
The type of contract selected depends on the information available to the parties
Indicate whether the statement is true or false
If your income goes up by 2% and, in response, the quantity demanded of good x rises by 3%, the income elasticity of demand would be:
a. 1.5 b. 6 c. 3 d. .20
Which of the following is NOT an example of a negative externality?
a. air pollution from a manufacturing plant. b. disrupted sleep from a neighbor's loud music. c. an illness caused by secondhand cigarette smoke. d. a decrease in your property value from neglecting your lawn and garden.