An income tax potential GDP by shifting the labor _ curve _.
A) decreases; supply; leftward
B) increases; supply; rightward
C) decreases; demand; leftward
D) increases; demand; rightward

Name: An income tax potential GDP by shifting the labor _ curve _. A) decreases; supply; leftward B) increases; supply; rightward C) decreases; demand; leftward D) increases; demand; rightward
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Question

Quizplus · Accepted Answer

An income tax can decrease potential GDP by reducing the incentive to work, which shifts the labor supply curve leftward.

An Income Tax Potential GDP by Shifting the Labor _