A decrease in which of the following would decrease the tax wedge?

For this reason, the multiplier effects of changes in taxes and transfer payments are smaller than the multiplier impacts of government spending.

What will be an ideal response?

Refer to Table 2-14. What is Ireland's opportunity cost of producing one guitar?

A) 0.2 motorcycles B) 5 motorcycles C) 8 motorcycles D) 32 motorcycles