What does empirical evidence suggest about the elasticity of labor supply? What does this suggest about the burden of the payroll tax in the United States?
What will be an ideal response?
Empirical studies of labor supply behavior in the United States suggest that for most of the work force, the elasticity of labor supply is close to zero. Therefore, most of the payroll tax in the United States is probably borne by workers.
Economics
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What does macroeconomic theory predict as the main economic effect of a reduction in the budget deficit?
a. lower real interest rates b. a drop in the exchange rate c. an increase in net exports d. All of the above are correct.
Economics
A ________ is known as a combination or cartel consisting of firms that place their assets in the custody of the board of trustees.
Fill in the blank(s) with the appropriate word(s)
Economics