Supply-side economists argue that changes in tax rates cause changes in

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Supply-side economists argue that changes in tax rates can affect the full-employment level of output by incentivizing businesses to invest and produce more. Additionally, changes in tax rates can affect labor supply by incentivizing individuals to work more or less depending on the marginal tax rate. Finally, changes in tax rates can also affect saving, as lower taxes may increase disposable income and therefore increase the ability and incentive to save. Therefore, all of the choices are correct.

Supply-Side Economists Argue That Changes in Tax Rates Cause Changes