Once supply side effects are taken into account, tax cuts for labor income can change
I. the supply of labor.
II. potential GDP.
A) I only
B) I and II
C) II only
D) neither I nor II
Correct Answer:
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Q73: Q74: The difference between the before-tax and after-tax Q75: The government begins year 1 with $25 Q76: The government begins year 1 with $25 Q77: An increase in taxes on labor income Q79: Looking at the supply-side effects on aggregate Q80: An income tax _ potential GDP by Q81: According to the Laffer Curve, the amount Q82: According to the Laffer Curve, when tax Q83: In January 2013 the Social Security payroll
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