Multiple Choice
All other things held constant,lower marginal (income) tax rates
A) necessarily increase tax revenues.
B) necessarily decrease tax revenues.
C) decrease the attractiveness of productive activities relative to leisure and tax- avoidance activities,and shift the SRAS curve rightward.
D) do not affect the attractiveness of productive activities relative to leisure and tax- avoidance activities and therefore the SRAS does not shift rightward or leftward.
E) increase the attractiveness of productive activities relative to leisure and tax- avoidance activities and shift the SRAS curve rightward.
Correct Answer:

Verified
Correct Answer:
Verified
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