If we compare the United States to France, we see that potential GDP per person in France is_{--------------------} that in the United States because the French tax wedge is _{--------------------} the U.S. tax wedge.

Question

Quizplus · Accepted Answer

Potential GDP per person in France is less than that in the United States because the French tax wedge is larger than the U.S. tax wedge, which can discourage labor participation and investment, leading to lower potential GDP.

If We Compare the United States to France, We See