Taking account of the supply-side effects, a tax cut on labor income ________ employment and ________ potential GDP.

Name: Taking account of the supply-side effects, a tax cut on labor income ________ employment and ________ potential GDP.
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Question

Quizplus · Accepted Answer

A tax cut on labor income generally increases employment by making work more financially rewarding, and it increases potential GDP by encouraging more labor supply and potentially more productivity.

Taking Account of the Supply-Side Effects, a Tax Cut on Labor