The Nonlabor Income of Households Will Increase, Causing Consumption to Increase

question 246

Multiple Choice

The nonlabor income of households will increase, causing consumption to increase and labor supply to decrease, if the government

• A) decreases the corporate profits tax.
• B) decreases transfer payments.
• C) implements contractionary fiscal policy.
• D) increases the personal income tax.

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Definitions:

Glycogen

A form of glucose storage in the body, primarily found in the liver and muscles.

Glucose

A simple sugar that is an important energy source in living organisms and a component of many carbohydrates.

Fuel

A substance used to produce energy through chemical or nuclear reactions, especially for powering engines or generating electricity.

Macronutrient

A type of nutrient required in large amounts in the diet, which includes proteins, fats, and carbohydrates.