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Home Q & A Board Other Fields Homework Help Business Economics
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Loraine Loraine
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Posts: 4563
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8 years ago
If a tax cut increases people's labor supply, then
A) tax cuts increase potential GDP.
B) tax cuts decrease aggregate demand.
C) tax cuts decrease potential GDP because the real wage rate falls.
D) tax cuts cannot affect aggregate demand.
E) Both answers B and C are correct.
Textbook 
Essential Foundations of Economics

Essential Foundations of Economics


Edition: 7th
Authors:
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Start by doing what's necessary; then do what's possible; and suddenly you are doing the impossible.
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SydnieSydnie
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#1
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8 years ago
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Loraine Author
wrote...

8 years ago
Smart ... Thanks!
rudy.zondo
wrote...

Yesterday
Correct Slight Smile TY
dri
wrote...

2 hours ago
Thanks for your help!!
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