Changes in Tax Revenue Do Not Necessarily Change Long-Run GDP

question 58

Multiple Choice

Changes in tax revenue do not necessarily change long-run GDP because

• A) long-run GDP is independent of labor supply.
• B) changes in government spending typically accompany tax changes.
• C) labor supply depends on average tax rates.
• D) labor supply depends on marginal tax rates.
• E) none of the above.

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Definitions:

Microorganisms

Minute living organisms, including bacteria, viruses, fungi, and protozoa, that can only be seen under a microscope.

Accounts Payable

Money owed by a business to its suppliers or vendors for goods and services received but not yet paid for.

Travel Expense

Costs associated with traveling for the purpose of conducting business-related activities.

Purchase Price

The amount of money paid to acquire a product or service.