Which of the Following Is Likely to Occur Because of a Decrease

question 86

Multiple Choice

Which of the following is likely to occur because of a decrease in marginal tax rates?

• A)An increase in aggregate supply because of an increased incentive to work.
• B)A decrease in aggregate supply because people cash in their investments.
• C)A decrease in aggregate demand because of an increased incentive to work.
• D)A rightward shift in the Phillips curve.

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Definitions:

Social Security Tax

A payroll tax paid by employees and employers to fund the Social Security program, which provides retirement, disability, and survivorship benefits.

Time Card

A record of the hours worked by an employee, used to calculate payroll and ensure compliance with labor laws.

Internal Control

Processes and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Payroll Bank Account

A designated bank account used exclusively for processing payroll transactions and managing salary disbursements.