The Level of Crowding Out Associated with a Tax Cut

question 79

True/False

The level of crowding out associated with a tax cut will be larger if the tax change has a supply-side effect than it will be if it only has a demand-side effect.

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Definitions:

Private-label Brands

Private-label Brands are products that are manufactured by one company but branded and sold under another company's brand, often seen in supermarket own-brand products.

Retaining

The process of keeping customers or employees engaged and continuing to use or work for an organization or service over time.

Label

A piece of information attached to a product or service that provides details about its origin, use, care, and disposal, often required by regulatory authorities.

Marketer

A person or company involved in promoting, selling, and distributing a product or service.