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Some Economists Believe That Permanently Lower Marginal Income Tax Rates

Question 129

Multiple Choice

Some economists believe that permanently lower marginal income tax rates __________ the incentive to work and thus shift the __________.


A) increase; LRAS curve to the right
B) increase; AD curve to the right
C) increase; SRAS curve to the left
D) decrease; LRAS curve to the right
E) decrease; AD curve to the left

Correct Answer:

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