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When Income Taxes Are Lowered in a Given Economy,it Causes

Question 90

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

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