Explain how tax cuts can increase aggregate supply
When the government reduces marginal tax rates, workers keep a higher fraction of any income they earn. As a result, the unemployed have a greater incentive to search for jobs, and the employed have a greater incentive to work longer hours. There is also a bigger incentive to invest and to start or expand businesses.
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Which statement most accurately defines economics?
A) Economics is the study of how people make money. B) Economics is the study of how people make choices to satisfy their wants. C) Economics is the study of values a society should choose. D) Economics is the study of how to eliminate scarcity.
It seems self evident that countries would have an advantage in producing those goods that use relatively large amounts of their most abundant factor of production
a. True b. False Indicate whether the statement is true or false