If You Were Building a Macroeconomic Model That Explores the Effect

question 48

Multiple Choice

If you were building a macroeconomic model that explores the effect of an increase in income tax rates on the size of the labour force,the exogenous variable(s) would be

• A) income tax rates.
• B) the size of the labour force.
• C) both income tax rates and the size of the labour force.
• D) neither income tax rates nor the size of the labour force.

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Definitions:

Social System

Refers to a complex set of human relationships interacting in many ways and at multiple levels, including institutions, organizations, and individuals.

Action System

An organizational concept in sociology and systems theory used to describe and analyze social behaviors and structures.

Structural Location

The position or place of something within an organized system or framework, often influencing its role or function.

Status-Role Complex

A concept in sociology that describes how an individual's status (social position) comes with associated roles (expected behaviors) that guide interactions and identity.