In October 2008, President Bush Enacted the Alternative Minimum Tax

question 49

Multiple Choice

In October 2008, President Bush enacted the Alternative Minimum Tax Relief Act of 2008, which resulted in lower taxes on labor income. According the supply-side view, as a result of this act the incentive to work ____________and the tax wedge____________ .

• A) increases; increases
• B) decreases; increases
• C) increases; decreases
• D) increases; does not change

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Definitions:

Equilibrium

Equilibrium is a condition in a chemical reaction when the rate of the forward reaction equals the rate of the reverse reaction, leading to a constant concentration of reactants and products.

Tautomers

Isomers of organic compounds that differ in the position of protons and electrons but have the same molecular formula, often interconverting in a chemical equilibrium.

Enols

Organic compounds containing a hydroxyl group directly bonded to a carbon atom that is double-bonded to another carbon atom.

Ketones

Ketones are organic compounds characterized by a carbonyl group (C=O) linked to two carbon atoms. They are part of many biological and synthetic substances.