In the Long Run

question 101

Multiple Choice

In the long run,

• A) fiscal policy has no effect on the labor force participation rate.
• B) lower tax rates can lower the labor force participation rate.
• C) less generous transfer payments can raise the labor force participation rate.
• D) higher tax rates can raise the labor force participation rate.
• E) None of the above.

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Definitions:

Self-Efficacy

An individual's belief in their own ability to succeed in specific situations or accomplish a task, which can influence their motivation and persistence.

Verbal Persuasion

The process of influencing or convincing others to believe or act in a certain way through the use of spoken words.

Self-Efficacy

An individual's belief in their capacity to execute behaviors necessary to produce specific performance attainments.

Law Of Effect

The principle that behaviour followed by pleasant consequences is likely to be repeated; behaviour followed by unpleasant consequences is not.