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:

Materials Ledger

A record of the quantity and value of materials on hand, received, and issued during a period.

Subsidiary Ledger

A detailed ledger that supplements a general ledger by providing detailed information for individual accounts, such as accounts payable or receivable.

Overapplied Overhead

A situation where the allocated manufacturing overhead cost for a period exceeds the actual overhead costs incurred, leading to a favorable variance.

Applied Overhead

The allocation of overhead costs to specific cost objects, such as products or jobs, based on a predetermined rate or method.