Suppose That an Economy's Labor Productivity and Total Worker-Hours Each

question 102

Multiple Choice

Suppose that an economy's labor productivity and total worker-hours each grew by 4 percent between year 1 and year 2. We could conclude that this economy's

• A) real GDP also increased by 4 percent.
• B) real GDP remained constant.
• C) production possibilities curve shifted outward.
• D) capital stock increased by 4 percent.

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Definitions:

Trial Courts

Courts that have original jurisdiction to hear and judge cases by applying the law to facts presented in trials.

Tax Cases

These are legal cases that deal with the interpretation and application of tax laws, resolved in various courts, including Tax Court, Federal District Courts, and the Supreme Court.

U.S. Tax Court

A federal court that provides taxpayers a forum to dispute tax deficiencies assessed by the IRS before paying the disputed amount.

Tax Rate Structure

A scheme that defines how tax rates progress based on variables such as income level, corporate profits, or other bases.