An income tax on labor income decreases the-------------------- of potential GDP and a tax on interest income decreases the-------------------- of potential GDP.
A) growth rate; level
B) level; growth rate
C) growth rate; growth rate
D) level; level
E) None of the above answers is correct.
Correct Answer:
Verified
Q65: Q66: When tax revenues-------------------- Q67: The law-making time lag is best described Q68: The federal budget is decided upon by Q69: How could an expansionary fiscal policy increase Q71: Needs-tested spending
A)minus; surplus
B)plus; surplus
C)divided by; surplus
D)minus;
A)increases as real GDP increases.
B)makes recessions
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