An increase in income taxes ________ employment and ________ potential GDP.

Name: An increase in income taxes ________ employment and ________ potential GDP.
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Question

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An increase in income taxes can decrease disposable income, reducing consumer spending and potentially leading to lower demand for goods and services, which can decrease employment. It can also reduce incentives to work or invest, potentially decreasing potential GDP.

An Increase in Income Taxes ________ Employment and ________ Potential

An Increase in Income Taxes Employment and Potential