In the Long-Run Model, a Tax Reduction That Increases Labor

question 2

Multiple Choice

In the long-run model, a tax reduction that increases labor supply accompanied by an increase in the money supply

• A) has no effect on GDP.
• B) increases investment.
• C) increases the price level.
• D) increases the interest rate.
• E) none of the above.

---

Definitions:

Model Business Corporation Act

A model set of laws proposed to standardize the regulation of corporate business practices across the United States.

Articles of Incorporation

Official documents filed with a governmental body to legally form a corporation, outlining its structure, purpose, and operations.

Secretary of State

A high-ranking government official typically responsible for the foreign affairs of a country, or in some cases, domestic administrative duties within state governments in the United States.

Preincorporation Contract

An agreement made by individuals before the formation of a corporation, which the corporation may later adopt or ratify.