How does the tax wedge influence potential GDP?
What will be an ideal response?
By decreasing employment, the tax wedge lowers potential GDP.
Economics
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Refer to Figure 7.1. Suppose the city passes an ordinance banning loud music, and this directly impacts Angus's legal ability to play his bagpipes. The equilibrium outcome of this game will be for Angus to ________ and for Dudley to ________
A) play the bagpipes; do nothing B) play the bagpipes; call the police C) mop floors; do nothing D) Both B and C are correct.
Economics
The long-run effect of rent control on an area includes
A) rampant building of new low-income housing. B) many new luxury apartments new luxury apartments will be built. C) new investors into the real estate market in the area. D) less investment into the real estate market in the area.
Economics