In October 2008, President Bush Enacted the Alternative Minimum Tax

question 139

Multiple Choice

In October 2008, President Bush enacted the Alternative Minimum Tax Relief Act of 2008, which resulted in lower taxes on labor income. According the supply-side view, as a result of this act the incentive to work ________ and the tax wedge ________.

• A) decreases; increases
• B) increases; does not change
• C) increases; decreases
• D) increases; increases

---

Definitions:

Brown Fat

A type of body fat that is activated when cold, burning calories to generate heat and help maintain body temperature.

Energy-Burning

Refers to the process of metabolizing or consuming energy, often in the context of physical activity and the body's metabolic rate.

Inferred Process

A method or operation deduced from indirect evidence or reasoning rather than direct observation.

Unpleasant Situation

A scenario or event that causes discomfort, distress, or unhappiness to an individual.