When income taxes fall, the supply of labor curve shifts rightward, ultimately leading to the LRAS curve shifting rightward (economic growth)
Indicate whether the statement is true or false
True
You might also like to view...
Under what circumstances will the residual supply curve for a country be upward sloping?
A) when it does not import any of the good from the rest of the world B) when it imports a small portion of the rest of the world's supply of the good C) when it imports a large portion of the rest of the world's supply of the good D) Either A or B
An increase in the ____ interest rate will lead to an increase in the ____
a. nominal; demand for loanable funds b. nominal; supply of loanable funds c. real; quantity of loanable funds supplied d. real; quantity of loanable funds demanded
In executing countercyclical policy, the Fed
a. is more effective during recessions than during inflationary periods b. is more effective during inflationary periods than during recessions c. is typically ineffectual because it is difficult for the Fed to determine just where the economy is on the business cycle d. relies on the government to execute complementary fiscal policy otherwise the Fed's monetary policy is weak and typically ineffective e. relies more on moral suasion than on the three primary tools available to it
Which of the following is considered an advantage of a sole proprietorship?
A. profit taxed only once B. limited liability for owner C. easy to raise large sums of capital D. permits effective specialization