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In October 2008, President Bush Enacted the Alternative Minimum Tax

Question 139

Multiple Choice

In October 2008, President Bush enacted the Alternative Minimum Tax Relief Act of 2008, which resulted in lower taxes on labor income. According the supply-side view, as a result of this act the incentive to work ________ and the tax wedge ________.


A) decreases; increases
B) increases; does not change
C) increases; decreases
D) increases; increases

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