Income tax payments
a. fall during periods of prosperity, thus reducing inflationary pressures
b. fall during periods of prosperity, thus increasing inflationary pressures
c. rise during periods of prosperity, thus reducing inflationary pressures
d. fall during recessions, thus increasing the problem of unemployment
e. rise during recessions, thus increasing the problem of unemployment
C
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The income effect for an inferior good
A) is negative. B) is zero. C) is positive. D) could be negative, zero, or positive.
A winter ice storm has paralyzed the entire east coast, reducing productivity sharply. This supply shock shifts the marginal product of labor curve
A) up and to the right, raising the quantity of labor demanded at any given real wage. B) down and to the left, reducing the quantity of labor demanded at any given real wage. C) up and to the right, reducing the quantity of labor demanded at any given real wage. D) down and to the left, raising the quantity of labor demanded at any given real wage.