Multiple Choice
When income taxes are lowered in a given economy,it causes the supply of labor curve to shift __________which ___________ the equilibrium quantity of labor employed.In terms of the production function (graphed with labor on the horizontal axis and Real GDP on the vertical axis) this then causes _______________,which makes the LRAS curve shift ____________ resulting in ______________________.
A) rightward; raises; the production function to shift upward; rightward; economic growth
B) leftward; lowers; the production function to shift downward; leftward; a shrinking economy
C) rightward; raises; a movement up along a given production function; rightward; economic growth
D) rightward; raises; a movement down along a given production function; leftward; a shrinking economy
Correct Answer:

Verified
Correct Answer:
Verified
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