Explain how tax cuts can increase aggregate supply
When the government reduces marginal tax rates, workers keep a higher fraction of any income they earn. As a result, the unemployed have a greater incentive to search for jobs, and the employed have a greater incentive to work longer hours. There is also a bigger incentive to invest and to start or expand businesses.
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Refer to Figure 4-1. If the market price is $2.50, what is the consumer surplus on the first ice cream cone?
A) $0.50 B) $1.00 C) $3.50 D) $9.00
Compare the market supply curves in a perfectly competitive market and a monopoly market
What will be an ideal response?
What is the difference between explicit collusion and implicit collusion?
What will be an ideal response?
If a firm sets marginal revenue equal to marginal cost, it will make an economic profit
Indicate whether the statement is true or false