Which of the Following Is Likely to Occur Because of a Decrease

question 86

Multiple Choice

Which of the following is likely to occur because of a decrease in marginal tax rates?

• A)An increase in aggregate supply because of an increased incentive to work.
• B)A decrease in aggregate supply because people cash in their investments.
• C)A decrease in aggregate demand because of an increased incentive to work.
• D)A rightward shift in the Phillips curve.

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Definitions:

Peripheral Countries

Countries often characterized by their marginal position within the global economic system, typically having less developed economies and depending on core countries for capital.

Raw Materials

The basic material from which a product is made, typically referring to natural resources that are used in production.

GDP

Gross Domestic Product, a monetary measure of the market value of all final goods and services produced in a period by a country.

U.S. Economy

The U.S. economy, one of the world's largest, is characterized by a high level of output per capita and a diverse array of industries including technology, finance, and services.