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  3. Study Set
    Macroeconomics Study Set 68
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    Exam 18: Extending the Analysis of Aggregate Supply
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    Refer to the Diagram
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Refer to the Diagram

Question 159

Question 159

Multiple Choice

  Refer to the diagram. If the tax rate is currently c and the government wants to maximize tax revenue, it should A)  leave the tax rate at c. B)  increase the tax rate to d. C)  reduce the tax rate to b. D)  reduce the tax rate to a. Refer to the diagram. If the tax rate is currently c and the government wants to maximize tax revenue, it should


A) leave the tax rate at c.
B) increase the tax rate to d.
C) reduce the tax rate to b.
D) reduce the tax rate to a.

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