When income taxes are lowered in a given economy, it causes the supply of labor curve to shift __________which ___________ the equilibrium quantity of labor employed. In terms of the production function (graphed with labor on the horizontal axis and Real GDP on the vertical axis) this then causes _______________, which makes the LRAS curve shift ____________ resulting in ______________________
A) rightward; raises; the production function to shift upward; rightward; economic growth
B) leftward; lowers; the production function to shift downward; leftward; a shrinking economy
C) rightward; raises; a movement up along a given production function; rightward; economic growth
D) rightward; raises; a movement down along a given production function; leftward; a shrinking economy
C
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Which of the following is NOT a source of bias in the CPI?
i. quality change bias ii. new goods bias iii. quantity change bias A) ii and iii B) iii only C) i only D) ii only E) i and ii
The U.S. work week has declined from 60 hours in 1890 to 40 hours today. The impact of the decline in working hours
A) increases U.S. GDP and increases the well-being of a typical working person in the U.S. B) increases U.S. GDP and decreases the well-being of a typical working person in the U.S. C) decreases U.S. GDP and decreases the well-being of a typical working person in the U.S. D) decreases U.S. GDP and increases the well-being of a typical working person in the U.S.