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Which Combination of Government Policies Would Be Most Likely to Increase

Question 36

Multiple Choice

Which combination of government policies would be most likely to increase labor supply?


A) Increasing income tax rates and cutting transfer payments to the needy
B) Decreasing income tax rates and cutting transfer payments to the needy
C) Decreasing income tax rates and increasing subsidies to businesses for hiring certain kinds of workers
D) Increasing income tax rates and cutting subsidies to business
E) Cutting transfer payments to the needy and increasing subsidies to business

Correct Answer:

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