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vellojo vellojo
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7 years ago
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.
Textbook 
Foundations of Macroeconomics

Foundations of Macroeconomics


Edition: 8th
Authors:
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Studying economics @ Edinburgh U
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amishamish
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#1
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7 years ago
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vellojo Author
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#2
7 years ago
Thank you for this

Comes at the right time too!

Good luck on your exams
Studying economics @ Edinburgh U
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