If we compare the United States to France, we see that potential GDP per person in France is
________ than that in the U.S. because the French tax wedge is ________ than the U.S. tax wedge.

Question

Quizplus · Accepted Answer

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

If We Compare the United States to France, We See