One Argument for Tax Cuts When the Government Is Running

question 128

Multiple Choice

One argument for tax cuts when the government is running a budget deficit is that lower

• A) tax revenue will reduce the budget deficit.
• B) marginal tax rates will incentivize employers to hire more workers.
• C) corporate tax rates will incentivize people to work and thus increase the overall tax revenue.
• D) marginal tax rates will incentivize people to work and thus increase the overall tax revenue.
• E) marginal tax rates will decrease aggregate supply.

---

Definitions:

Labor Arbitrator

An individual or panel tasked with resolving disputes between employers and employees or unions through binding decision-making.

Labor Mediator

A neutral party who helps negotiate and resolve disputes between employers and employees or labor unions.

Accomplishments

Achievements or completed goals that have been successfully reached through effort, skill, or courage.

Labor Unions

Organizations formed by workers from related fields that work together to secure favorable wages, working conditions, and other employment benefits.