Which tax system requires higher-income taxpayers to have lower tax rates, even though they pay a larger amount of tax when compared to lower-income taxpayers?

Refer to Figure 9.2. A movement from point c to point a could be caused by a(n)

A) decrease in government spending. B) increase in the price of oil. C) decrease in taxes. D) decrease in short-run aggregate supply.

The long-run aggregate supply increases as:

a. new production technology is introduced. b. the quality of labor declines. c. the average price level increases. d. natural resources become depleted. e. the minimum wage rate increases.