According to Supply-Side Theories, Which of the Following Happens If

question 68

Multiple Choice

According to supply-side theories, which of the following happens if the government cuts the tax rate?

• A)Workers keep less of each additional dollar they earn, so work effort increases, and aggregate supply shifts right.
• B)Workers keep less of each additional dollar they earn, so work effort decreases, and aggregate supply shifts left.
• C)Workers keep more of each additional dollar they earn, so work effort increases, and aggregate supply shifts right.
• D)Workers keep more of each additional dollar they earn, so work effort decreases, and aggregate supply shifts left.

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Definitions:

Own Residence

The act of living in a housing unit that one owns, as opposed to renting from someone else.

Grandparents

The parents of a person's father or mother, playing significant roles in families through support, tradition, and wisdom.

Extended Family

A family group that extends beyond the nuclear family, including relatives such as grandparents, aunts, uncles, and cousins, often living close by or within the same household.

Nuclear Family

A family unit consisting of two parents and their children, living together as a single household.