If a new tax policy relatively raises the tax rate 2.5 percent but causes the output supplied to fall by 15 percent,the absolute value of the tax elasticity of supply is
A) 0.375.
B) 1.5.
C) 6.0.
D) 37.5.
Correct Answer:
Verified
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A)Reduce marginal
Q59: Which of the following policies is a
Q60: It is likely that people will work
Q61: A decrease in marginal tax rates will
Q62: A decrease in marginal tax rates will
Q64: In 2001 and 2002,the Bush administration _
Q65: A decrease in the marginal tax rates
Q66: Supply-side economists favor tax incentives that
A)Encourage saving.
B)Increase
Q67: If the absolute value of the tax
Q68: Supply-side economists favor tax incentives that
A)Discourage saving
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