An increase in the income tax rate leads to a large increase in deadweight loss if ________
A) the labor supply curve is highly elastic
B) the labor supply curve is perfectly inelastic
C) the labor demand curve is elastic
D) the labor demand curve is perfectly inelastic
A
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A temporary decline in productivity would cause the IS curve to
A) shift up and to the right. B) shift down and to the left. C) remain unchanged. D) shift up and to the right only if people face borrowing constraints.
The merchandise trade balance measures
a. the value of goods and services exported b. the value of all goods and services exported minus the value of all goods and services imported c. the value of all goods and services exported minus the value of all goods and services imported, and transactions to finance the difference d. the value of all tangible products exported minus the value of all tangible products imported e. the value of all tangible products exported minus the value of all tangible products imported, and transactions to finance the difference