Multiple Choice
If the government cuts the tax rate, workers get to keep
A) less of each additional dollar they earn, so work effort increases, and aggregate supply shifts right.
B) less of each additional dollar they earn, so work effort decreases, and aggregate supply shifts left.
C) more of each additional dollar they earn, so work effort increases, and aggregate supply shifts right.
D) more of each additional dollar they earn, so work effort decreases, and aggregate supply shifts left.
Correct Answer:
Verified
Correct Answer:
Verified
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