In a traditional economy, innovation is encouraged

According to this Application, some conservatives worry that a value-added tax ________ and some liberals worry that a value-added tax ________

A) will penalize high-income individuals; will decrease per-capita GDP B) will discourage consumers from saving; will decrease federal tax revenue C) will result in consumers not realizing all the taxes they pay; is regressive D) is progressive; will reduce investment.

When the economy is in an inflationary gap, the labor market is experiencing a _____________. In a self-regulating economy, wage rates will then ___________ and the ______________ curve will shift __________________

A) shortage; rise; SRAS; leftward B) shortage; fall; SRAS; leftward C) surplus; rise; AD; rightward D) shortage; fall; AD; rightward E) surplus; fall; SRAS; rightward