A decrease in the marginal tax rate, with the average tax rate held constant, will
A) increase the amount of labor supplied at any real wage.
B) not affect the amount of labor supplied at any real wage.
C) decrease the amount of labor supplied at any real wage.
D) increase the amount of labor supplied at any real wage if the average tax rate is above the marginal tax rate, but decrease the amount of labor supplied at any real wage if the average tax rate is below the marginal tax rate.
A
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In a barter economy the number of prices in an economy with N goods is
A) [N(N - 1 )]/2. B) N(N/2 ). C) 2N. D) N(N/2 ) - 1.
A decrease in the effective tax rate on capital would cause the IS curve to
A) shift up and to the right. B) shift down and to the left. C) remain unchanged. D) remain unchanged if taxes are fully deductible from income; otherwise, shift up and to the right.