An increase in income taxes ________ employment and ________ potential GDP
A) increases; increases
B) increases; does not change
C) decreases; decreases
D) does not change; does not change
E) increases; decreases
C
You might also like to view...
Refer to Figure 10-3. Best friends Laurel and Hardy both enjoy watching romantic comedies and science fiction movies. Based on the diagrams above what can you conclude about their movie preferences?
A) The diagrams do not provide any information about relative preferences. B) They have identical movie preferences. C) Hardy enjoys romantic comedies more than Laurel. D) Hardy enjoys science fiction movies more than Laurel.
Suppose an economy only produces two goods, robots and ice cream. Last month, the economy produced 10 robots and 200 gallons of ice cream. This month, the same economy produced 15 robots and 240 gallons of ice cream. Which of the following statements could explain this change?
a. This month, the economy reduced the unemployment of its resources. b. This month, the economy experienced an improvement in technology. c. This month, the economy experienced an increase in resources d. All of the above are correct.