In 2012, in The Wall Street Journal, economists Edward Prescott and Lee Ohanian asserted that
A) in the United States, when the average worker earns $100 from additional work, he or she will be able to consume an additional $85 worth of goods and services.
B) the typical American has always worked more hours per year than the typical Frenchman and the typical German, despite vastly different tax rates in those countries.
C) raising tax rates from their 2012 levels would significantly reduce U.S. economic activity.
D) raising tax rates from their 2012 levels would significantly increase the federal government's tax revenue.

Question

Quizplus · Accepted Answer

Prescott and Ohanian asserted that raising tax rates from their 2012 levels would significantly reduce U.S. economic activity. This assertion aligns with the view of many economists who argue that increasing tax rates can discourage economic growth by reducing the incentive for individuals and businesses to work, save, and invest.

In 2012, in the Wall Street Journal, Economists Edward Prescott