The Basic Personal Amount Is a Non-Refundable Tax Credit That

question 13

True/False

The basic personal amount is a non-refundable tax credit that can reduce tax payable to zero for people with income under $10 000.

---

Definitions:

Recessionary Gap

A situation where an economy's actual production is less than its potential output, often leading to unemployment and underused resources.

Potential Output

The level of productivity an economy can achieve with full employment and resources utilization, without causing inflation.

Natural Rate

The Natural Rate often refers to the natural rate of unemployment, where the unemployment rate is at a level expected in a fully efficient market without cyclical or short-term unemployment.

Long-Run Aggregate Supply Curve

This curve shows the relationship between the overall price level and the total output produced in an economy when wages and resource prices fully adjust to changes, reflecting an economy’s maximum sustainable output level.