If the Government Cuts the Tax Rate, Workers Get to Keep

question 104

Multiple Choice

If the government cuts the tax rate, workers get to keep

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

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Definitions:

Follower Strategy

A market approach where a company chooses to enter a market by following in the footsteps of pioneers, often adapting and improving existing products or services.

Existing Product

A product that is already available in the market, as opposed to a new or forthcoming product.

Improved Version

An updated iteration of a product that is enhanced to offer better performance, additional features, or other improvements over the original.