A change in which of the following will change the optimal rate of output?
A)Payroll taxes.
B)Profit taxes.
C)Property taxes.
D)Inflation taxes.

Name: A change in which of the following will change the optimal rate of output? A)Payroll taxes. B)Profit taxes. C)Property taxes. D)Inflation taxes.
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Question

Quizplus · Accepted Answer

Payroll taxes are a tax on wages paid to employees. A change in payroll taxes will change the cost of labor to the firm, which will in turn change the optimal rate of output.

A Change in Which of the Following Will Change the Optimal