A Report on the EU Economic Stimulus Plan Suggested That

question 286

Multiple Choice

A report on the EU economic stimulus plan suggested that "... Governments must consider ... cutting VAT [value added tax] and labor taxes ..." The VAT is similar to a sales tax. If governments follow the suggestions, there will be according to the supply- side view.

• A) an upward shift in the aggregate production function
• B) an increase in saving and an increase in the tax wedge
• C) an increase in the labor supply and an increase in the tax wedge
• D) an increase in labor supply and a decrease in the tax wedge

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Definitions:

Service Department

A division within a company that performs support functions, aiding the production or sales departments but not generating revenue directly.

Information Technology

The use of computers, storage, networking and other physical devices, infrastructure, and processes to create, process, store, secure, and exchange all forms of electronic data.

Operating Departments

Divisions within an organization directly involved in its core business activities, such as production or sales.

Computer Workstations

High-performance computers designed for technical or scientific applications, often used in professional environments for computing-intensive tasks.