If there is a decrease in government purchases along with a decrease in the marginal tax rate on labour income, then:
A) the income effect would be toward an increase in labour supply.
B) the overall effect on labour supply is positive.
C) the substitution effect would be towards an increase in labour supply.
D) all of the above.
Correct Answer:
Verified
Q30: In the short run if the tax
Q31: If there is a decrease in government
Q32: In the long run an increase in
Q33: If there is a decrease in government
Q34: In the long run an increase in
Q36: An increase in government purchases financed by
Q37: If transfer payments are related to characteristics
Q38: If the marginal tax on labour income,
Q39: If the real marginal tax rate,
Q40: In the short run if the tax
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